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Bharat Agri Fert & Realty Ltd.

BSE: 531862 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE842D01011
BSE 00:00 | 23 Apr 141.05 2.05
(1.47%)
OPEN

146.00

HIGH

153.45

LOW

136.00

NSE 05:30 | 01 Jan Bharat Agri Fert & Realty Ltd
OPEN 146.00
PREVIOUS CLOSE 139.00
VOLUME 185
52-Week high 174.90
52-Week low 72.35
P/E 167.92
Mkt Cap.(Rs cr) 75
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 146.00
CLOSE 139.00
VOLUME 185
52-Week high 174.90
52-Week low 72.35
P/E 167.92
Mkt Cap.(Rs cr) 75
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bharat Agri Fert & Realty Ltd. (BHARATAGRI) - Auditors Report

Company auditors report

To the Members of

Bharat Agri Fert and Realty Limited Report on the Standalone financial statements

We have audited the accompanying standalone financial statements of Bharat Agri Fertand Realty Limited ('the Company') which comprise the balance sheet as at 31stMarch 2017 the statement of profit and loss and the cash flow statement for the yearended on that date and a summary of the significant accounting policies and otherexplanatory information (herein after referred to as "standalone financialstatements'').

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 ("the Rules") and the Companies (AccountingStandards) Amendment Rules 2016 ("the Rules"). This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material 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 and the Order under Section 143(11) ofthe Act.

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 andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone 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 31s1 March 2017 and its loss and its cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("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' a statement on the matters specified in theparagraphs 3 and 4 of the Order.

2. Asrequired bySection 143(3)oftheAct 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; 37

(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 and the Companies (Accounting Standards) Amendment Rules2016 ("the Rules");

(e) on the basis of the written representations received from the directors as on 31March 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31s' March 2017 from being appointed as a director in termsof Section 164 (2) of the Act;

(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 Independent Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. the Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 29 to the standalonefinancial statements;

ii. there are no material foreseeable losses arising out of any long-term contracts forwhich provision is required to be made under any law or accounting standards. The Companyhas not entered into any derivative contracts; and;

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

iv. The Company has provided requisite disclosures in note 42 to these standalonefinancial statements as to holding as well as dealings in the Specified Bank Notes (SBNs)during the period from 8* November 2016 to 30* December 2016 on the basis ofinformation available with the Company. Based on audit procedures and relying on themanagement's representation we report that the disclosures are in accordance with theBooks of accounts maintained by the Company and as produced to us by the Management.

For Desai Saksena & Associates

Chartered Accountants

Firm's registration number: 102358W

Alok K. Saksena Partner

Membership number: 35170 Mumbai 30* May 2017

Annexure - A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2017 wereport that:

(i) In respect of Companys Property Plant and Equipment:

(a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment.

(b) The Company has a regular programme of physical verification of its property plantand equipment by which these are verified in a phased manner over a period of three years.In our opinion this periodicity of physical verification is reasonable having regard tothe size of the Company and the nature of its assets. In accordance with this programmecertain property plant and equipment were verified during the year and no materialdiscrepancies were noticed 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 areheld in the name of the Company.

(ii) in respect Company's inventories:

The inventory has been physically verified by the management at reasonable intervalsduring the year. In our opinion the frequency of such verification is reasonable. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material.

(iii) in respect of loans granted to parties covered in register maintained undersection 189 of the Act:

The Company has granted loans to a company (associate) covered in the registermaintained under section 189 of the Act.

(a) In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the company covered in the register maintained under Section 189of the Act are not prima facie prejudicial to the interest of the Company.

(b) Schedule of repayment of principal and payment of interest has been stipulated.Quarterly interest payment with one- year moratorium is stipulated. Principal is repayablewithin a period of five years from the date of disbursement.

(c) As the principal is repayable within five years question of overdue do not arise.Interest for March 2017 quarter is overdue till date. The Company has taken reasonablesteps for recovery.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured or provided any guarantees orsecurity to parties covered under section 185 of the Act. The Company has complied withthe provisions of section 186 of the Act in respect of the loans given investments made.The Company has not given guarantees or security to the company (associate) covered undersection 186 of the Act.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public. Accordingly paragraph 3 (v) of theOrder is not applicable to the Company.

(vi) We have broadly reviewed the books of accounts and records maintained by theCompany pursuant to the Rules prescribed by the Central Government under sub section (1)of section 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not made a detailedexamination of the records.

(vii) in respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxvalue added tax duty of excise duty of customs service tax professional tax cess andother material statutory dues have been generally regularly deposited during the year bythe Company with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundincome tax value added tax duty of excise duty of customs service tax professionaltax cess and other material statutory dues were in arrears as at 31 March 2017 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no materialstatutory dues which have not been deposited with the appropriate authorities on accountof any dispute other than service tax and electricity charges.

o Name of the Statute Nature of dues Amount (Rs. in Lacs) Financial Year to which it Pertains Forum Where Dispute is pending
Maharashtra State 1 Electricity Distribution Co. Ltd Arrears of Electricity Charges with interest Gross Amount * Rs. 106.3 Lacs 2015-2016 The Chief Electrical Inspector /Appellate Authority Chembur (E) Mumbai.

i ne company nas paia rcs. op.u i Lacs ro MbtuuL againsttne demand

(viii) ln our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks. TheCompany does not have any loans or borrowings from financial institutions or governmentand has not issued any debentures.

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

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its

(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 provisions 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.

(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 sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired under Accounting standard (AS) 18 Related Party Disclosure specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations give 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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(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.

ForDesai Saksena & Associates

Chartered Accountants

Firm's registration number: 102358W

AlokK. Saksena

Partner

Membership number: 35170

Mumbai 30"' May 2017

Annexure - B to the Independent Auditors' Report for the year ended 31stMarch 2017 on the Financial Statement:

(Referred to in our report of even date)

Report on the Internal Financial Controls over financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Act

We have audited the internal financial controls over financial reporting of Bharat AgriFertand Realty Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ('ICAI') (the'Guidance Note'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information 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 Standards on Auditing prescribed under Section 143( 10) of the Act and theGuidance Note to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with the ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively 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 judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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 systemoverfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control overfinancial reporting is a process designed toprovide 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 standalone 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 and to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system overfinancial reporting and such internal financial controls overfinancialreporting were operating effectively as at 31st March 2017 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note.

For Desai Saksena & Associates

Chartered Accountants

Firm's registration number; 102358W

AlokK. Saksena Partner

Membership number: 35170 Mumbai 30h May 2017.