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Everest Organics Ltd.

BSE: 524790 Sector: Health care
NSE: N.A. ISIN Code: INE334C01029
BSE LIVE 15:23 | 18 Aug 96.50 2.20
(2.33%)
OPEN

92.50

HIGH

96.50

LOW

92.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 92.50
PREVIOUS CLOSE 94.30
VOLUME 570
52-Week high 114.80
52-Week low 44.45
P/E 46.62
Mkt Cap.(Rs cr) 77
Buy Price 94.00
Buy Qty 102.00
Sell Price 96.50
Sell Qty 8.00
OPEN 92.50
CLOSE 94.30
VOLUME 570
52-Week high 114.80
52-Week low 44.45
P/E 46.62
Mkt Cap.(Rs cr) 77
Buy Price 94.00
Buy Qty 102.00
Sell Price 96.50
Sell Qty 8.00

Everest Organics Ltd. (EVERESTORGANICS) - Auditors Report

Company auditors report

TO THE MEMBERS OF

EVEREST ORGANICS LIMITED

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Everest Organics Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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.

AUDITORS’ RESPONSIBILITY

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 misstatements. An audit involvesperforming procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 accounting policies used and the reasonableness of the accountingestimates made by the Company’s directors as well as evaluating the overallpresentation 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 financial statements.

OPINION :

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 of the state of affairs of the Company as at March31 2016 and its profits and its Cash Flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by the Companies (Auditors’ Report) Order 2016 ("TheOrder") issued by the Central Government of India in terms of sub-section 11 ofSection 143 of the Act we give in the Annexure-A a Statement on the matters specified inParagraph 3 and 4 of the Order to the extent applicable.

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 Profit and Loss Statement and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) ofthe 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"

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 on its financialposition in its financial statements as referred to Note No.15 to the FinancialStatements.

(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.

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

For P.S.N.RAVISHANKER & ASSOCIATES
Chartered Accountants
FRN : 003228S
(P. RAVI SHANKER)
Place : Hyderabad Partner
Date : 30-05-2016. ICAI M.No.025288

ANNEXURE – A to the Independent Auditors’ Report dt.30-05-2016 issued to themembers of Everest Organics Limited

Statement on the matters specified in Paragraphs 3 & 4 of the Companies (AuditorsReport) Order 2016

(i) a) The Company has maintained proper records showing broad particulars includingquantitative details and situation of fixed assets on the basis of available information.However the fixed assets register is to be updated. We are informed by the managementthat the company is in the process of compiling and reconstructing the Fixed AssetsRegister to show full particulars including quantitative details and situation of FixedAssets.

b) As explained to us by the management majority of the fixed assets have beenphysically verified in a broad manner by the management in a phased periodical mannerwhich in our opinion is reasonable having regard to the size of the Company and nature ofits assets. We are informed that no material discrepancies were noticed on such physicalverification pending adjustment.

c) The title deeds of immovable properties are held in the name of the company.

(ii) The inventories have been physically verified during the year by the managementin respect of majority of the high value items at reasonable intervals. In our opinionthe frequency of such verification is reasonable. The discrepancies if any have beenproperly dealt with in the books of account.

(iii) As per the information and explanations furnished to us by the management and asper the books of accounts and other documents examined by us the company has not grantedany loans secured or unsecured to companies firms limited partnerships or other partiescovered in the register maintained under section 189 of the Companies Act 2013.

(iv) As per the information and explanations furnished to us by the management and asper the books of accounts and other documents examined by us the company has not givenany loans made investments given guarantees securities to the parties to whichprovisions of Sections 185 and 186 of the Companies Act 2013 are applicable.

(v) According to the information and explanations given to us the Company has notaccepted deposits to which the directives issued by the Reserve Bank of India and theprovisions of Section 73 to 76 or any other relevant provisions of the Companies Act andthe rules framed there under wherever applicable from the public.

However the company had earlier taken / accepted / held unsecured loans totallyamounting to Rs.905.61 lakhs (Rs. 886.15 lakhs as at 31-03-2015) out of which an amountof Rs.313.59 lakhs(Previous year Rs.303.58 lakhs) is from the Directors and theirrelatives and an amount of Rs.524.91 lakhs (Previous Year Rs.510.95 lakhs) is from an NBFCand Rs.67.10 lakhs (Previous Year Rs.71.62 lakhs) in the form of Security Deposits fromEmployees all stated to be coming under the category of promoters their friendsrelatives employees and Associate concerns and it has explained to us that the unsecuredloans were earlier brought into the company to meet the then financial obligations of thecompany to the then Financial Institutions/Banks.

(vi) The Company has maintained cost records which prima facie appear to broadlymeet the requirements prescribed by the Central Government U/s.148(1) of the CompaniesAct 2013 read with Companies (Cost Records and Audit) Rules 2014. However the contentsof these accounts and records have not been examined by us in detail.

(vii) a) According to the records of the Company undisputed statutory dues includingProvident Fund Employees’ State Insurance Income Tax(FBT of Rs.8.55 lakhs) SalesTax Wealth Tax Service Tax duty of Customs Duty of Excise Value Added Tax Cess andother statutory dues have been generally deposited with the appropriate authorities withoccasional delays. However according to the information and explanations given to us noother undisputed amounts payable in respect of the aforesaid dues were outstanding as at31-03-2016 for a period of more than six months from the date they became payable.

(b) There are no disputes in respect of dues of income tax. There are no dues to salestax or service tax or duty of customs or duty of excise or value added tax have not beendeposited on account of any dispute.

(viii) As per the information and explanations given to us the company has notdefaulted in repayment of dues to the Banks or Government. The company has not made anyborrowings from the financial institutions or debenture holders.

(ix) During the year the company has not raised money by way of initial public offer orfurther public offer (including debt instruments). As per the information and explanationsgiven to us the term loans raised during the were applied for the purposes for which thesame were raised;

(x) During the year under review no fraud by the company or on the company by itsofficers or employees has been noticed or reported.

(xi) As per the information and explanations given to us by the management themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct;

(xii) The Company is not a Nidhi company. Hence Clause (xii) is not applicable to thecompany.

(xiii) As per the information and explanations given to us and based on our audit inour opinion all transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards;

(xiv) The company has not made any preferential allotment or private placement ofshares of fully or partly convertible debentures during the year under review;

(xv) As per the information and explanations and based on examination the company hasnot entered into any non-cash transactions with directors or persons connected with them;

(xvi) the company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For P.S.N.RAVISHANKER & ASSOCIATES
Chartered Accountants
FRN : 003228S
(P. RAVI SHANKER)
Place : Hyderabad Partner
Date : 30-05-2016. ICAI M.No.025288

Annexure-B to the Independent Auditors’ Report of even date on the FinancialStatements of Everest Organics Limited

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 EverestOrganics Limited ("the Company") as of 31st March 2016 in conjunction with ouraudit of the 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 the Institute ofChartered Accountants of India and deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial 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 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 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 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 Institute of CharteredAccountants of India.

For P.S.N.RAVISHANKER & ASSOCIATES
Chartered Accountants
FRN : 003228S
(P. RAVI SHANKER)
Place : Hyderabad Partner
Date : 30-05-2016. ICAI M.No.025288.