TO THE MEMBERS OF AIMCO PESTICIDES LIMITED
Report on the Financial Statements:
We have audited the accompanying standalone financial statements of Aimco PesticidesLimited ("the Company") which comprise the Balance Sheet as at 31 March2015 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the 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 preparation ofthese standalone 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 maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 controls 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.
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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
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 financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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.
Basis for Qualified Opinion
The Company has paid the sum of ` 2535000 during the year and ` 9074825 in earlieryears to the directors by way of remuneration which is subject to approval of the CentralGovernment under section 197 of the Act (Refer Note 28.6 of the financial statements).
The above matter had caused us to qualify our audit opinion on the financial statementsfor the year ended 31st March 2014.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in the Basis for QualifiedOpinion paragraph the aforesaid financial statements give the information required by theAct 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 2015 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 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in the paragraphs 3and 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 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 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 the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act; and
(f) 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 on its financialposition in its financial statements - Refer Note 28.2 to the financial statements;
ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses;
iii) No amount is required to be transferred to the Investor Education and ProtectionFund by the Company.
For CNK & Associates LLP
Firm Registration No.: 101961W
H. V. Kishnadwala
Membership No.: 37391
Date: 29th May 2015
Annexure to the Independent Auditors' Report
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory requirements'of our Report of even date to the members of Aimco Pesticides Limited on the standalonefinancial statements as of and for the year ended 31st March 2015] On the basis of suchchecks as considered appropriate and in terms of the information and explanation furnishedto us we state as under:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year inaccordance with the phased programme of verification adopted by the Company and nomaterial discrepancies were noticed on such verification.
(ii) (a) As explained to us the inventories (except goods-in-transit) have beenphysically verified during the year by the management at the end of the year. In ouropinion having regard to the nature and location of stocks the frequency of the physicalverification needs to be increased.
(b) In our opinion procedures of physical verification of inventory should be at morefrequent intervals considering the size of the Company and the nature of is business.
(c) In our opinion the Company is maintaining proper records of inventory and thediscrepancies noticed on physical verification of the same were not material in relationto the operations of the Company and the same have been properly dealt with in the booksof account.
(iii) (a) The Company has given deposit against leased premises to a firm covered inthe register maintained under section 189 of the Act.
(b) In respect of the aforesaid deposit the same is repayable on surrender of leasedpremises. (c) In respect of the aforesaid deposit in absence of any defaults thequestion of taking reasonable steps for the recovery of the principal amount does notarise.
(iv) In our opinion there is an adequate internal control system commensurate with thesize of the Company and the nature of its business with regard to purchase of inventoryand fixed assets and for the sale of goods and services. During the course of our auditwe have neither come across nor have been informed of any continuing failure to correctmajor weaknesses in the aforesaid internal control system.
(v) In our opinion the Company has complied with the provisions of Section 73 to 76 andother relevant provision of the Act and the rules framed thereunder. According to theinformation and explanation given to us no order has been passed by the Company Law Boardor National Company Law Tribunal or Reserve Bank of India or any other Tribunal related tocompliance with above provisions.
(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Governmentunder section 148(1) of the Act and are of the opinion that prima-facie the prescribedaccounts and cost records have been made and maintained. We have not however made adetailed examination of the cost records with a view to determining whether they areaccurate or complete.
(vii) (a) According to the records of the Company examined by us there are noundisputed statutory dues payable in respect of provident fund employees' stateinsurance income tax sales tax wealth tax service tax duty of customs duty ofexcise value added tax cess and other material statutory dues as applicable which areoutstanding at the year-end for a period of more than six months from the date they becamepayable other than a sum of Rs. 10626596 of income tax ` 1650227 of fringe benefittax and ` 545612 on account of tax deducted at source.
(b) According to the records of the Company examined by us there are no dues of IncomeTax sales tax wealth-tax service tax duty of customs duty of excise value added taxor cess which have not been deposited on account of any dispute.
(c) In our opinion no amount is required to be transferred to the investor educationand protection fund.
(viii) The Company has accumulated losses as on 31st March 2015 which are more thanfifty percentage of the net worth of the Company. The Company has not incurred cash lossesduring the current financial year as well as during the immediately preceding financialperiod.
(ix) The Company has not defaulted in repayment of any dues to banks. There are no duesto a financial institution or to debenture holders.
(x) The Company has not given any guarantees for loans taken by others from banks orfinancial institutions.
(xi) In our opinion the term loan has been applied for the purpose for which it wasobtained.
(xii) During the course of our examination of the books and records of the Company wehave neither come across any instance of fraud of any material amount on or by the Companynor have we been informed of any such case by the management.
For CNK & Associates LLP
Firm's Registration No. 101961W
H. V. Kishnadwala
Membership No: 37391
Place : Mumbai
Dated : 29th May 2015