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Agro Tech Foods Ltd.

BSE: 500215 Sector: Industrials
NSE: ATFL ISIN Code: INE209A01019
BSE LIVE 15:45 | 02 Dec 455.85 -14.15
(-3.01%)
OPEN

465.00

HIGH

473.90

LOW

455.30

NSE LIVE 15:45 | 02 Dec 463.10 -6.20
(-1.32%)
OPEN

481.90

HIGH

481.90

LOW

461.00

OPEN 465.00
PREVIOUS CLOSE 470.00
VOLUME 1354
52-Week high 570.00
52-Week low 426.00
P/E 44.96
Mkt Cap.(Rs cr) 1110.91
Buy Price 455.85
Buy Qty 200.00
Sell Price 0.00
Sell Qty 0.00
OPEN 465.00
CLOSE 470.00
VOLUME 1354
52-Week high 570.00
52-Week low 426.00
P/E 44.96
Mkt Cap.(Rs cr) 1110.91
Buy Price 455.85
Buy Qty 200.00
Sell Price 0.00
Sell Qty 0.00

Agro Tech Foods Ltd. (ATFL) - Auditors Report

Company auditors report

TO THE MEMBERS OF AGRO TECH FOODS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Agro Tech FoodsLimited (‘the Company’) which comprise the Balance Sheet as at 31 March 2016the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information (collectivelyreferred to as the ‘standalone financial statements’).

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (‘the Act’) with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the Audit Report under theprovisions of the Act and the Rules made thereunder to the extent applicable.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s 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 Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2016 and its profit and its 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 2016("theOrder") issued by the Central Government of India in terms of sub-section 11 ofSection 143 of Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the ‘Annexure A’ a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 bestof 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 theCompany so far as it appears from our examination of those books;

c) the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) on the basis of written representations received from the directors as on 31 March2016 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2016 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’; and

g) With respect to the other matters to be included in the Auditor’s 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 disclosed the impact of pending litigations as at 31 March 2016 onits financial position in its financial statements – Refer Note 2.27 and 2.47 to thestandalone financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts; and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31 March2016.

for B S R & Associates LLP
Chartered Accountants
Firm's Registration Number:116231W/W-100024
Place : Gurgaon Sriram Mahalingam
Partner
Date : 26 April 2016 Membership No: 049642

ANNEXURE- A TO THE INDEPENDENT AUDITORS’ REPORT ON THE STANDALONE FINANCIALSTATEMENTS

The Annexure-A referred to in the Independent Auditors’ Report of even date onthe Standalone Financial Statements to the Members of Agro Tech Foods Limited (‘theCompany’) for the year ended 31 March 2016. We report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b)The Company has a regular program of physical verification of its fixed assets bywhich all fixed assets are verified every year. In our opinion the periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noted on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties asdisclosed in Note 2.9 on fixed assets to the financial statements are held in the name ofthe Company.

(ii) The inventories except goods-in-transit have been physically verified by theManagement during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noticed on verification between the physical stocks and thebook records were not material.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the Register maintained underSection 189 of the Companies Act 2013 (‘the Act’). Accordingly paragraph3(iii) of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 186 of the Act with respect to theinvestments made. The Company has not granted any loans or provided any guarantees orsecurity to the parties covered under Section 185 and 186 of the Act.

(v) The Company has not accepted any deposits from the public in accordance with theprovisions of Section 73 to 76 of the Act and Rules framed thereunder.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government of India for maintenance of cost recordsunder sub-section (1) of Section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained.

However we have not made a detailed examination of the records.

(vii)(a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees’state insurance Income-tax Sales-tax Service tax Duty of customs Duty of exciseValue added tax and other material statutory dues have been regularly deposited during theyear by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees’ state insurance Income-taxSales-tax Service tax Duty of customs Duty of excise Value added tax and othermaterial statutory dues were in arrears as at 31 March 2016 for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofService tax which have not been deposited with the appropriate authorities on account ofany dispute. According to the information and explanations given to us the following duesof Income tax Sales tax Duty of custom Duty of excise Value added tax and Entry taxhave not been deposited by the Company on account of disputes:

Name of the Statute Nature of Dues Amount in* (Rs. Million) Period to which the amount relates Forum Where the dispute is pending
Central Excise Act 1944 Excise Duty 1.32 2010–11 and 2011-12 Central Excise and Service Tax Appellate Tribunal New Delhi
Excise Duty 27.10 2009 – 12 Central Excise and Service Tax Appellate Tribunal Bangalore
Andhra Pradesh General Sales Tax Act 1956 Sales Tax 0.10 1997 – 98 Sales Tax Appellate Tribunal Hyderabad
Andhra Pradesh Entry Tax Act 2001 Entry Tax 3.52 2005 - 06 and 2006 - 07 Sales Tax Appellate Tribunal Hyderabad
Tamil Nadu Sales Tax Act 1959 Sales Tax 0.26 2002 – 03 Assistant Commissioner (Appeals) Commercial Taxes Chennai
West Bengal Sales Tax Act 1994 Sales Tax 0.72 2001 – 02 Sales Tax Appellate Tribunal Kolkata
West Bengal Value Added Tax Act 2003 and Central Sales Tax Act 1956 Value Added Tax and Central Sales Tax 4.43 2009 – 10 Appellate &Revisional Board West Bengal Commercial Taxes Kolkata
West Bengal Value Added Tax Act 2003 and Central Sales Tax Act 1956 Value Added Tax and Central Sales Tax 3.49 2010-11 Appellate &Revisional Board West Bengal Commercial Taxes Kolkata
Bihar Sales Tax Act 1981 Sales Tax 0.62 2001 – 02 Joint Commissioner of Commercial Taxes (Appeals) - Central Division Patna
2.26 2002 – 03 Sales Tax Appellate Tribunal Patna
Delhi Sales Tax Act 1975 and Central Sales Tax Act 1956 Sales Tax and Central Sales Tax 0.95 2003 – 04 Additional Commissioner Commercial Taxes Delhi
1.64 2004 – 05 Additional Commissioner Commercial Taxes Delhi
Uttar Pradesh Sales Tax Act 1948 Sales Tax and Central Sales Tax 0.85 2003 – 04 Deputy Commissioner Commercial Taxes Ghaziabad
Uttar Pradesh Value Added Tax Act 2008 Value Added Tax 63.53 2007 – 08 Deputy Commissioner Ghaziabad
Bombay Sales Tax Act 1958 Sales Tax 0.63 2002 – 03 Joint Commissioner of Sales Tax (Appeals) Mumbai
Gujarat Sales Tax Act 1970 Sales Tax 0.12 1998 – 99 Deputy Commissioner of Sales Tax (Appeals) Ahmedabad
0.12 1999 - 2000 Sales Tax Appellate Tribunal Ahmedabad
Kerala Value Added Tax Act 2005 Value Added Tax 0.94 2010 – 11 Deputy Commissioner (Appeal) Kochin
The Rajasthan Entry Tax - Goods Act 2003 Entry Tax 36.86 2002 – 04 Tax Board Ajmer
The Assam Value Added Tax Act 2003 and Central Sales Tax Act 1956 Value Added Tax and Central Sales Tax 0.36 2009 – 10 Superintendent of Taxes UNIT D Guwahati
The Rajasthan Entry Tax - Goods Act 2003 Entry Tax 99.58 2008-09 to 2012-13 Tax Board Ajmer
Rajasthan Sales Tax Act 1954 Central Sales Tax 0.34 2001-02 Commercial Taxes Officer Dungarpur
Income-tax Act 1961 Income tax 53.60 AY 2010-11 Income Tax Appellate Tribunal Hyderabad
Income-tax Act 1961 Income tax 28.31 AY 2011-12 Income Tax Appellate Tribunal Hyderabad

*net of deposits

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to its bankers. TheCompany does not have any loan or borrowings from any financial institution or governmentnor has it issued any debentures during the year.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instrument) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable to the Company.

(x) 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.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provision ofSection 197 read with schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Financial Statements as required by the applicableAccounting Standard.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.

Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv)According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransaction with the directors or person connected with him.

Accordingly paragraph 3(xv) of the Order is not applicable to the Company.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable tothe Company.

for B S R & Associates LLP
Chartered Accountants
Firm's Registration Number :116231W/ W-100024
Sriram Mahalingam
Place : Gurgaon Partner
Date : 26 April 2016 Membership No: 049642

ANNEXURE-B TO THE INDEPENDENT AUDITORS’ REPORT ON THE STANDALONE FINANCIALSTATEMENTS

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act’)

We have audited the internal financial controls over financial reporting of Agro TechFoods Limited (‘the Company’) as of 31 March 2016 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants 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 company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's 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 issued by ICAI and deemedto be prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; 2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and 3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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 in adequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 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 ICAI.

for B S R & Associates LLP
Chartered Accountants
Firm's Registration Number:116231W/ W-100024
Place : Gurgaon Sriram Mahalingam
Partner
Date : 26 April 2016 Membership No: 049642

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