To The Members Of
Umred Agro Complex Limited
Report on the Financial Statements
We have audited the accompanying ?nancial statements of UMRED AGRO COMPLEX LIMITEDwhich comprise the Balance Sheet as at 31 March 2015 the Statement of Pro?t and Loss theCash Flow Statement for the year then ended and a summary of signi?cant accountingpolicies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash Rows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 there under.
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 mis-statement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 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 Companys Directors as well as evaluating the overallpresentation of the financial statements.We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
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 Except
- Treatment of employees benefits as per the Accounting Standard -15 (revised 2005) asstated in Serial No. J of significant Accounting Policies -Note 1.
- Methods and Rates of calculating Depreciation is adopted as per Companies Act 1956.
a) In the case of the Balance Sheet of the state of at airs of the Company as at March312015;
b) In the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and
c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
a) Note 23 to the financial statements which included the extraordinary/exceptionalitems which has net impact on the Profit/ (Loss) after tax on the company to the extent ofRs 234.57 Lakhs.
Extraordinary item includes Credit on accounts of waiver from Cargil India PrivateLimited and MSEDCL to the extent of Rs 138.90 Lakhs and Rs 7.31 Lakhs respectively. Thisis on account of Settlement arrangement with Cargill (I) Pvt. Ltd. and MSEDCL.
The Company has settled the sales tax claims of Rs 538.55 and debited the same to extraordinary items.
During the Current Financial Year 2014-15 the Company has written off the amount of Rs19.26 Lakhs and written back the total amount of Rs 137.02 Lakhs in respect of variousparties however confirmation has not been received from some Parties which has reducedthe loss to extent of Rs 117.70 Lakhs.
b) We draw attention that the accounts have been prepared on the principles ofapplicable to a going concern despite significant erosion in net worth and viability offuture operations as per the directives from Honble BIFR which is under review.
Our opinion is not modi?ed in respect of these matters.
Report on other Legal and Regulatory Requirements
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) All the Accounts are maintained at head office and no branch auditors are appointedfor any of the branches.
d) The Balance Sheet the Statement of Pro?t and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
e) In our opinion the aforesaid financial statements comply with the AccountingStandards speci?ed under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
f) The going concern matter described in sub-paragraph (b) under the Emphasis ofMatters paragraph above in our opinion may have an adverse effect on the functioning ofthe Company.
g) On the basis of written representations received from the directors as on 31 March2015 taken on record by the Board of Directors none of the directors is disquali?ed ason 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct.
h) With respect to the other matters included in the Auditors Report and to ourbest of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.
|Place: NAGPUR ||for Anil Mardikar and Co |
|Date: 25th May 2015 ||Chartered Accountants |
| ||(Anil Mardikar) |
| ||Partner |
| ||(FRN NO. - 100454W) Membership No. - 32778 |
Annexure to Auditors Report
Annexure referred to in paragraph 7 of our Report of even date to the members of UmredAgro Complex Ltd. on the accounts of the company for the year ended 31st March 2015.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. a) The company has maintained proper record showing full particulars includingquantitative details and situation of Fixed Asset; the format is different from oneprescribed under CARo.2013.
b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
c) In our opinion and according to the information and explanations given to us fixedasset has not been disposed during the year.
2 a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.
3 As per the information provided the Company has not granted any loans securedunsecured to/from companies firms or other parties covered under section 189 of theact.
4 In our opinion and according to the information and explanations given to us thereis generally an adequate internal control procedure commensurate with the size of thecompany and the nature of its business for the purchase of inventories & fixed assetsand payment for expenses & for sale of goods. Further on the basis of our examinationof books of account records of the company and as per the information and explanationgiven to us no major weaknesses in the internal controls has been noticed or reported.
5 The Company has not accepted any deposits from the public covered under section 73 to76 of the Companies Act 2013.
6 The Company is not covered under Section 148(1) of Companies Act 2013 relating tocost audit record.
7 a) As per the records and information provided the Company is not regular indepositing the statutory dues namely Tax Deducted as
|Particulars ||Amount |
|1. Provident Fund Payable ||1093573/- |
|2. TDS Professional Fees ||63684/- |
|3. TDS on Salary ||583000/- |
|4. TDS on Contractor ||68678/- |
|5. ESIC Payable ||10597/- |
|6. Profession tax payable ||50625/- |
b) As per the information provided there is no dispute or case is pending with any ofthe statutory authority forum.
a) There has not been an occasion in case of the company during the year under reportto transfer any sum to the Investor Education and Protection Fund. The question ofreporting delay in transferring such sums does not arise.
3 The Accumulated loss of the company are more than 50% of its paid up capital and freereserves .The company incurred such losses during the financial year covered by our auditand the immediately preceding financial years. The Company is the Sick Company within themeaning of clause (o) of sub section (1) of Section 3 of the sick Industrial Companies(Special Provision ) Act 1985 (SICA) .The company is under preview of Honble BIFR.
4 In our opinion and according to the information and explanation given to us there areno overdue payables to Financial Institutions/ Banks as on 31st March 2015.
5 As per the Information provided the company has not given any guarantee on behalf ofany third party.
6 During the course of our examination of the books and records of the company carriedin accordance with the auditing standards generally accepted in India we have neithercome across any instances of fraud on by the company noticed or reported during the courseof our audit nor we have been informed of any such instances by the company.
|Place: Nagpur || |
|Date: 25.05.2015 || |
| ||For Anil Mardikar and Co Chartered Accountants |
| ||Anil Mardikar |
| ||Partner |
| ||FRN :- 100454W |
| ||Membership No.: 032778 |