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Galaxy Agrico Exports Ltd.

BSE: 531911 Sector: Engineering
NSE: N.A. ISIN Code: INE803L01016
BSE LIVE 10:00 | 27 Sep 32.00 1.30
(4.23%)
OPEN

32.00

HIGH

32.00

LOW

32.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 32.00
PREVIOUS CLOSE 30.70
VOLUME 5
52-Week high 33.95
52-Week low 18.50
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 32.00
Sell Qty 50.00
OPEN 32.00
CLOSE 30.70
VOLUME 5
52-Week high 33.95
52-Week low 18.50
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 32.00
Sell Qty 50.00

Galaxy Agrico Exports Ltd. (GALAXYAGRICO) - Auditors Report

Company auditors report

To

The Members

GALAXY AGRICO EXPORTS LIMITED

Report on the Standalone Financial Statements

I have audited the accompanying financial statements of GALAXY AGRICO EXPORTSLIMITED ('the Company') which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss and the Cash Flow Statement for the year theended on that date and a summary of significant accounting policies and other explanatoryinformation.

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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 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 are 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.

Auditor's Responsibility

My responsibility Is to express an opinion on these financial statements based on myaudit. I 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.

I conducted my audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that I 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 performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including 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 controls system over financial reporting relevant to theCompany's preparation of the 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 accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion.

Opinion

In my opinion and to the best of my information and according to the explanations givento me the financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31s*March 2016;

(b) in the case of the Statement of Profit and Loss of the Profit for the year endedon that date.

(c) in the case of the Cash Flow Statement of the Cash Flows for the year ended onthat date.

Emphasis of Matter

I draw attention to Note - J of Statement on Significant Accounting Policies relatingto 'Retirement Benefits'. The liability for Gratuity is determined on payment basis andnot in accordance with Accounting Standard 15 "Employee Benefits". The amount ofGratuity liability has not been ascertained and therefore not quantified. My opinion isnot modified in this respect

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 I give in the "Annexure A" the statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act I report that:

a. I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief are necessary for the purpose of my audit;

b. in my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books;

c the Balance Sheet and 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 my opinion the aforesaid financial statements comply with the AccountingStandards referred to in Section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accourtts) Rules 2014 except in the case of accounting for Gratuity as per AS- 15 on Employee Benefits; -

e. on the basis of written representations received from the directors as on 31s*March 2016 taken on record by the Board of Directors none of the directors aredisqualified as on 31s* March 2016 from being appointed as a director in termsof Section 164(2) of the Act; and

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 myseparate 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 my opinionand to the best of my information and according to the explanations given to me:

(i) The Company has disclosed the impact of pending litigations on its financialposition In its financial statements - Note no. 30 to the financial statements;

(ii) The Company has not entered into any long term contracts including derivativecontracts which require provisioning under any law or accounting standards for materialforeseeable losses if any;

(iii) There are no amounts required to be transferred to Investor Education andProtection Fund by the company during the year ended 31s* March 2016.

For Arun M. Kothari
Chartered Accountant
Arun M. Kothari
Proprietor
Membership No.: 108669
Rajkot dated 30:r May 2016

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of my report of even date)

On the basis of the records produced to me for my verification/perusal such checks asI considered appropriate and in terms of information and explanations given to me on myenquiries I state that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of two years which in my opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets have been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.

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

(ii) (a) According to the information and explanation given to me the inventory hasbeen physically verified during the year by the management. In my opinion the frequencyof verification is reasonable.

(b) In my opinion and according to the information & explanations given to me thediscrepancies noticed on physical verification of the inventory as compared to bookrecords which has been properly dealt with in the books of account were not material.

(iii) According to the information and explanations given to me during the periodcovered under report the Company has not granted unsecured loan to parties covered in theregister maintained under Section 189 of the Companies Act 2013.

(iv) In my opinion and according to the information and explanations given to me thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

(v) In my opinion and according to the information and explanations given to me theCompany has not accepted any deposits from the public and hence the directives issued bythe Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 with regard tothe deposits accepted from the public are not applicable.

(vi) In my opinion and according to the information and explanations given to me theCentral Government has prescribed the maintenance of cost records under Section 148(1) ofthe Companies Act 2013 in respect of goods manufactured by the Company. However theoverall turnover of the company in the immediately preceding financial year was not Rs. 35crores or more. Accordingly the provisions of clause 3 (vi) of the Order are notapplicable to the Company.

(vii) In respect of statutory dues;

(a) According to the information and explanations given to me the Company was regularin depositing with appropriate authorities undisputed statutory dues including EmployeeProvident Fund Income Tax Sales Tax Value Added Tax Service Tax Excise Duty cess andother material statutory dues except few cases of delay in payment of Tax Deducted atSource Tax Collected at Source & Service Tax during the period ending 31stMarch 2016

(b) According to the information and explanations given to me there are no dues inrespect of Provident Fund ESIC Income Tax Wealth Tax Sales Tax Value Added TaxService Tax Customs Duty and cess that have not been deposited with the appropriateauthorities on account of any dispute.

(viii) In my opinion and according to the information and explanations given to me theCompany has not defaulted in repayment of dues to bank or financial institutions duringthe period covered under this report. The Company has not taken any loan either fromfinancial institutions or from the government and has not Issued any debentures.

(ix) In my opinion and according to the information and explanations given to me thecompany has not raised moneys by way of initial public offer or further public offerincluding debt instruments and term Loans. Accordingly the provisions of clause 3 (ix) ofthe Order are not applicable to the Company.

(x) In my opinion and according to the information and explanations given to me Ireport that no fraud by the Company or on the company by its officers or employees hasbeen noticed or reported during the year.

(xi) In my opinion and according to the information and explanations given to memanagerial remuneration have been paid in accordance with the provisions of section 197read with Schedule V to the Companies Act 2013.

(xii) In my opinion and according to the information and explanations given to me theCompany is not a Nidhi Company. Accordingly the provisions of clause 3 (xii) of the Orderare not applicable to the Company.

(xiii) In my opinion and according to the information and explanations given to me alltransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 and the details have been disclosed in the Financial Statements asrequired by the applicable accounting standards.

(xiv) In my opinion and according to the information and explanations given to me thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. Accordingly the provisions ofclause 3 (xiv) of the Order are not applicable to the Company.

(xv) In my opinion and according to the information and explanations given to me thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly the provision of clause 3 (xv) of the Order is not applicable tothe Company.

(xvi) In my opinion and according to the information and explanations given to me thecompany is not required to be registered under section 45 LA of the Reserve Bank of IndiaAct 1934 and accordingly the provision of clause 3 (xvi) of the Order is not applicableto the Company.

For Arun M. Kothari
Chartered Accountant
Arun M. Kothari
Proprietor
Membership No.: 108669
Rajkot dated 30th May 2016

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3ofSection 143

of the Companies Act 2013 ("the Act")

(Referred to in paragraph 2(f) under the heading of "Report on other Legal andRegulatory Requirements" of my report of even date)

I have audited the internal financial controls over financial reporting of GALAXYAGRICO EXPORTS LIMITED ("the Company") as of March 31 2016 in conjunctionwith my audit of the standalone financial statements of the Company for the year ended onthat 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 Control 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 the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I have conducted my audit in accordance withthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing —issued by-ICAIand- prescribed tindersectidfn43(lU) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that Icomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 my 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 March 31 2016 criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Control over Financial Reportingissued by the Institute of Chartered Accountants of India.

For Arun M. Kothari
Chartered Accountant
Arun M Kothari
Proprietor
Membership No.: 108669
Rajkot dated 30th May 2016