INDEPENDENT AUDITOR'S REPORT ON STANDALONE FINANCIAL STATEMENTS
To the members of
Agrimony Commodities Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying Standalone financial statements of AGRIMONYCOMMODITIES LIMITED ("the company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Standalone Financial Statements
2. The Companys Board of Directors is responsible for the matters stated inSection 134 (5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit.
4. We have taken into account the provisions of the Act and the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.
5. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give true and fair
view in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Companys Directors as well asevaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the company as at 31March 2017 and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
9. As required by the Companies (Auditors Report) Order 2016 ("theorder") issued by the Central Government of India in term of sub- section (11) of thesection 143 of the Act we give in the Annexure A a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
10. 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 bestof 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 theCompany so far as appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Reports are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards s pecified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B".
g) With respect to the other matters to be included in the Auditors Report inaccordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has no pending litigation as at March 31 2017.
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transfer to theInvestor Education and Protection Fund by the Company.
iv. The company has provided requisite disclosure in note no.12 forming part of cashand bank balance to the standalone financial statements as to holding of specified banknotes between November 08 2016 and December 30 2016 as well as dealing in specified banknotes during such period. Based on our audit procedure and relying on the managementrepresentation regarding the holding and nature of the cash transactions includingspecified bank notes we report that those disclosures are in accordance with the books ofaccounts maintained by the Company and as produced to us by the management.
For V. R. BHABHRA & CO.
Vimal R. Bhabhra
Membership No: - 046043
Date: May 30 2017.
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
(Referred to paragraph (9) under 'Report on other legal and regulatory requirements' ofour report of even
date to the member of Agrimony commodities limited on the Standalone financialstatements for the year
ended March 312017)
i. In respect of Fixed Assets:
a. The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
b. The fixed assets of the Company have been physically verified by the Managementduring the year except the Office Premises at Ahmedabad and no material discrepancieshave been noticed on such verification. In our opinion the frequency of verification isreasonable.
c. The title deeds of immovable property at Ahmedabad which is not in the name of theCompany and also physically not traceable and hence the aforesaid Asset has been WrittenOff as an Impairment during the year as reported in the Financial statements of theCompany during the financial year.
ii. In respect of Inventories:
The Company is in the business of trading of commodities and does not hold anyinventory. Therefore the provisions of Clause 3 (ii) of the said Order are not applicableto the Company.
iii. (a) The company has granted interest free loans to its wholly Owned Subsidiaryto the extent
of Rs. 3770989/-.
(b) In respect of the aforesaid loan there are no schedules for repayment of interesthas been stipulated by the Company. Therefore in absence of stipulation of repayment termwe do not make any comment on the regularity of repayment of principal and payment ofinterest.
(c) In respect of the aforesaid loan since no repayment period is specified and hencethere is no amount is to be considered as overdue for more than ninety days.
iv. In our opinion and according to the information and explanations given to usthe Company has complied with the provisions of Section 185 and 186 of the Companies Act2013.
v. According to the information and explanations given to us and in our opinionthe company has not accepted any deposits from the public and hence the directives issuedby the Reserve bank of India and the provisions of Section 73 to 76 or any other relevantprovisions of the Act and Companies (Acceptance of deposit) Rule 2014 with regard to thedeposits accepted from the public are not applicable.
vi. The company has not accepted any deposits from the public within the meaning ofSection
7374 75 and 76 of the act and the rules framed there under to the extent notified.
vii. The Central Government of India has not specified the maintenance of costrecords under subsection (1) of Section 148 of the Act for any of the products of theCompany.
viii. In respect of statutory dues:
a) According to the information and Explanation given to us and records of the Companyas produced and examined by us in our opinion the company is regular in depositing theundisputed statutory dues in respect of Income-tax Sales-tax Service-tax cess and anyother material statutory dues as applicable with the appropriate authorities.
b) As explained to us the Company did not have any statutory disputed amounts payablein respect of Income-tax Sales-tax Service tax and other material statutory dues were inarrears as at 31st March 2017 for a period of more than six months from the date theybecame payable.
ix. According to the records of the Company examined by us and the information andExplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as at thebalance sheet date.
x. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans have been applied for the purposefor which they were obtained.
xi. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.
xii. The Company has paid/ provided for managerial remuneration in accordance withthe requisite approvals mandated by the provisions of Section 197 read with Schedule V tothe Act.
xiii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany.
xiv. The Company has entered into transactions with related parties in compliancewith the provisions of Section 177 and 188 of the Act. The details of such related partytransactions have been disclosed to the financial statements as required under AccountingStandard (AS 18) Related Party disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.
xv. The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review39.Accordingly the provisions of Clause 3(xiv) of the order are not applicable to theCompany.
xvi. The Company has not entered into non cash transactions with its directors][and/or] persons connected with him Accordingly the provisions of Clause 3 (xv) of theOrder are not applicable to the Company.
xvii. The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Orderare not applicable to the Company.
For V R BHABHRA & CO. Chartered Accountants
Vimal R. Bhabhra Partner
Membership No: - 046043 FRN: 112861W
Date: May 30 2017.
ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT
(Referred to paragraph (10) (f) under 'Report on other legal and regulatoryrequirements' of our report of
even date to the member of Agrimony Commodities limited on the Standalone financialstatements for the
year ended March 31 2017)
leport on the Internal Financial Controls under Clause (i) of Sub - section 3 ofSection 143 of the Act
1. We have audited the internal financial controls over financial reporting of AgrimonyCommodities Limited (the Company) as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Managements Responsibility for Internal Financial Controls
2. The Companys management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountant of India (ICAI). Theseresponsibilities include the design Implementation and maintenance of adequate Internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to companys policies the safeguardingof its assets the prevention and detection of fraud and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
3. Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exits and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgment including the assessment of the risk ofmaterial misstatement of the Standalone financial statements whether due to fraud orerror.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystems over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of Standalone financial statement for external purpose in accordancewith generally accepted accounting principles. A companys internal financial controlover financial reporting includes those policies and procedures that
i. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
ii. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and
iii. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the companys assets that could havea material effect on the Standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
8. In our opinion the Company has in all materials respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For V R BHABHRA & CO.
Vimal R. Bhabhra
Membership No: - 046043
Date: May 30 2017