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AVT Natural Products Ltd.

BSE: 519105 Sector: Industrials
NSE: AVTNPL ISIN Code: INE488D01021
BSE LIVE 11:11 | 20 Sep 39.70 0.40
(1.02%)
OPEN

40.45

HIGH

40.45

LOW

39.55

NSE 11:13 | 20 Sep 39.70 0.50
(1.28%)
OPEN

38.80

HIGH

40.40

LOW

38.80

OPEN 40.45
PREVIOUS CLOSE 39.30
VOLUME 22205
52-Week high 50.95
52-Week low 28.50
P/E 24.97
Mkt Cap.(Rs cr) 605
Buy Price 39.65
Buy Qty 200.00
Sell Price 39.75
Sell Qty 149.00
OPEN 40.45
CLOSE 39.30
VOLUME 22205
52-Week high 50.95
52-Week low 28.50
P/E 24.97
Mkt Cap.(Rs cr) 605
Buy Price 39.65
Buy Qty 200.00
Sell Price 39.75
Sell Qty 149.00

AVT Natural Products Ltd. (AVTNPL) - Auditors Report

Company auditors report

To the members of AVT Natural Products Limited Chennai

Report on the Standalone financial Statements

We have audited the accompanying standalone financial statements of AVT NaturalProducts Limited (‘the Company') which comprise the Balance Sheet as at 31st

March 2017 the Statement of Profit and Loss the Cash

Flow Statement for the year then ended and a summary of the significant accountingpolicies 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 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 Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 . We conducted our audit in accordancewith the Standards on

Auditing specified under Section 143 (10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statement whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. 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.

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 31st March 2017 and its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order

2016 (‘the Order') issued by the Central Government of India in terms ofsub-section 11 of section 143 of the Act we give in the Annexure A a statement on thematters specified in paragraphs 3 and 4 of the said Order to the extent applicable.

As required by Section 143 (3) of the Act we report that: a. we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b. in our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books ; c. the Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount ; d. in our opinion the aforesaid standalone 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 receivedfrom the directors as on 31st March 2017 and taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2017 from being appointed as adirector in terms of Section 164 (2) of the Act.; f. with respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer our separate report in Annexure B; and g. withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us: i) The Company hasdisclosed the impact of pending litigations on its financial position in its standalonefinancial statements - Refer Note 28(d) to the

ii) The Company did not have any long term contracts for which there where any materialforeseeable losses - Refer Note 29 to the standalone financial statements; iii) There hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company; iv) The Company has provided requisitedisclosures in its standalone financial statements as to holdings as well as dealings inSpecified Bank

Notes during the period from 8th November 2016 to 30th December 2016. Based on theaudit procedures and relying on the management representation we report that thedisclosure are in accordance with books of accounts maintained by the Company and asproduced to us by the management. Refer Note No. 31 to the standalone financialstatements.

For SURI & CO.

Chartered Accountants

Firm Regn. No. 004283S

G. Rengarajan

Partner

Membership No : 219922

Place : Chennai

Date : 29th May 2017

ANNEXURE A TO THE REPORT Of THE AUDITORS

To the members of AVT Natural Products Limited Chennai i) (a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of Fixed Assets.

(b) Physical verification of major items of these assets has been conducted by theManagement during the financial year and no material discrepancies were noticed on suchverification.

(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 the immovable properties areheld in the name of the Company. ii) The Physical verification of inventory has beenconducted at reasonable intervals by the management and no material discrepancies werenoticed. iii) The Company has not granted any loans secured or unsecured to theCompanies Firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Companies Act 2013. Accordingly Para 3 (iii) (a) (b)& (c) of the Order are not applicable. iv) In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofsection 185 and 186 of the Act with respect to the investments made and guarantees given.v) The Company has not accepted any deposits from the public during the year. vi) We havebroadly reviewed the books of account relating to materials labour and other items ofcost maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules2014 prescribed by the Central Government for the maintenance of cost records undersection 148 (1) (d) of the Companies Act 2013 and we are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. vii) a) The Company isregular in depositing with appropriate authorities undisputed statutory dues includingProvident Fund Employees State Insurance Income tax Sales tax Service Tax Customsduty Excise duty Value Added Tax Cess and other statutory dues applicable to it. Noundisputed statutory dues were outstanding as at the last day of the financial year for aperiod of more than six months from the date they became payable. b) The details ofdisputed statutory dues which have not been deposited are as under:

Name of the Statute Nature of the dues Amount (Rs.) forum where dispute is pending
Andhra Pradesh APGST 1999-00 to 2004-05 Sales Tax
General Sales 7994313 Appellate
Tax Act Assessments Tribunal
Joint
Karnataka Sales KST 2006-07
27516 Commissioner
Tax Act Assessment
( Appeals )
Service Tax for
Business Auxiliary CESTAT
Services for the years 2005-2009 Service Tax for 54149000* Bangalore
Business Auxiliary
Services for the years 2009-16 79635808 Commissioner (Appeals)
Z
Service Tax Service Tax for Foreign Testing 4827704 Commissioner (Appeals)
Fees for the years 2008-09 to 2012-13 CENVAT credit utilised on Exempted goods for the years 2007- 08 to 2013-14 7232737 Commissioner (Appeals)
Customs Act Cess on DTA Sales for the years 2007 - 2013 613935 Commissioner (Appeals)

*A stay order has been received against the amount disputed viii) The Company has notdefaulted in repayment of dues to banks. ix) The Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments) and term loansduring the year. Accordingly Para 3 (ix) of the Order is not applicable. x) According tothe information and explanations given to us no fraud by the Company or any fraud on theCompany by its officers or employees has been noticed or reported during the year. xi)According to the information and explanations given to us and based on our examination ofthe records of the Company the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act. xii) The Company is not a Nidhi Company. AccordinglyPara 3 (xii) of the Order is not applicable. xiii) According to the information andexplanations given to us and based on our examination of the records of the Company alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details of such transactions have beendisclosed in the Financial Statements as required by the applicable accounting standards.xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. 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-cashtransactions with directors or persons connected with him. xvi) The Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For SURI & CO.

Chartered Accountants

Firm Regn. No. 004283S

G. Rengarajan

Partner

Membership No : 219922

Place : Chennai

Date : 29th May 2017

ANNEXURE B TO THE REPORT Of THE AUDITORS

To the members of AVT Natural Products Limited Chennai

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 AVT NaturalProducts Limited (‘the

Company') as of 31st March 2017 in conjunction with our audit of the standalonefinancial 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 safeguarding ofits 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 Companies Act 2013.

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 Companies Act

2013 to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance

Note require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

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 judgment 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 controls systemover 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

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 inadequate 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 31st March 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 SURI & CO.

Chartered Accountants

Firm Regn. No. 004283S

G. Rengarajan

Partner

Membership No : 219922

Place : Chennai

Date : 29th May 2017