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JK Agri Genetics Ltd.

BSE: 536493 Sector: Others
NSE: N.A. ISIN Code: INE690O01011
BSE LIVE 15:25 | 18 Aug 1025.00 -9.90
(-0.96%)
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984.00

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1049.90

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 984.00
PREVIOUS CLOSE 1034.90
VOLUME 1136
52-Week high 1233.00
52-Week low 393.15
P/E 28.07
Mkt Cap.(Rs cr) 369
Buy Price 1000.00
Buy Qty 5.00
Sell Price 1025.00
Sell Qty 15.00
OPEN 984.00
CLOSE 1034.90
VOLUME 1136
52-Week high 1233.00
52-Week low 393.15
P/E 28.07
Mkt Cap.(Rs cr) 369
Buy Price 1000.00
Buy Qty 5.00
Sell Price 1025.00
Sell Qty 15.00

JK Agri Genetics Ltd. (JKAGRIGENETICS) - Auditors Report

Company auditors report

TO THE MEMBERS OF JK AGRI GENETICS LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of JK Agri GeneticsLimited (“the Company”) which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the 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 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.

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 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 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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation 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 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 2016 and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matter in the Notes to the financial statements:

Note No. 33(a) regarding pending realization from government parties amounting to '2422.19 Lacs (shown under exceeding six months) plus security deposit amounting to '121.68 Lacs are considered good as stated in the said note.

Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory

Requirements

1. As required by the Companies (Auditor’s Report) Order 2016(“theOrder”) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us during the course of audit we give in the Annexure ‘A’ astatement on the matters specified in the paragraphs 3 and 4 of the Order.

2. 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 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) As required by section 143(3)(i) of the Companies Act 2013 and based on thechecking of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us our report on the InternalFinancial Controls over Financial Reporting is as per 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 standalone financial statements - refer Note no. 28(A) & 29 to thestandalone financial statements.

ii. The Company did not have any such long-term contracts including derivativecontracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For LODHA & CO.
Chartered Accountants
Firm Registration No. 301051E
(N.K. Lodha)
Place : New Delhi Partner
Date : 12th May 2016 Membership No. 85155

Annexure - A referred to in paragraph 1 under the heading “Report on other legaland regulatory requirements” of our report of even date on the Standalone FinancialStatements of JK Agri Genetics Ltd. for the year ended 31st March 2016.

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

(b) The fixed assets have been physically verified by the Management according to theprogramme of periodical verification in phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its fixed assets. Thediscrepancies noticed on such physical verification were not material.

(c) As per the records and information and explanations given to us title deeds ofimmovable properties are held in the name of the Company.

2. The inventory of the Company (except stock lying with the third parties and intransit) has been physically verified by the management at reasonable intervals and theprocedures of physical verification of inventory followed by the Management are reasonablein relation to the size of the Company and nature of its business. The discrepanciesnoticed on such physical verification of inventory as compared to book records were notmaterial.

3. The Company has not granted any loan secured or unsecured to any companies firms orother parties covered in the register maintained under Section 189 of Companies Act 2013.Accordingly the provisions of paragraph 3(iii) of the order are not applicable.

4. According to the information explanations and representations provided by themanagement and based upon audit procedures performed we are of the opinion that inrespect of loans investments guarantees and security the Company have complied with theprovisions of the Section 185 and 186 of the Companies Act 2013.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Section 73 to76 or any other relevant provisions under the Act. We have been informed that no order hasbeen passed by the Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any Court or other Tribunal in this regard.

6. According to the information & explanations given to us maintenance of costrecords has not been specified by Central Government under sub section (1) of section 148of the Companies Act 2013 for the products of the company.

7. (a) According to the records of the Company and information and explanations givento us the Company is generally regular in depositing undisputed statutory dues includingprovident fund employees’ state insurance income tax sales tax service taxcustom duty excise duty cess and other material statutory dues with the appropriateauthorities to the extent applicable and there are no undisputed statutory dues payablefor a period of more than six months from the date they become payable as at 31stMarch 2016.

(b) According to the records and information & explanations given to us there areno dues in respect of service tax duty of custom and duty of excise or value added taxthat have not been deposited with the appropriate authorities on account of any disputeand the dues in respect of income tax and sales tax that have not been deposited with theappropriate authority on account of dispute and the forum where the dispute is pending aregiven below: -

Nature of statute Nature of dues Amount (Rs. in lacs) Period to which the amount relates (F.Y.) Forum where dispute is pending
Income Tax Act 1961 Income Tax 132.40 2007-2008 ITAT Kolkata
76.91 2008-2009 Commissioner (Appeals)
90.58 2009-2010 Commissioner (Appeals)
276.05 2010-2011 Commissioner (Appeals)
5.36 2011-2012 Commissioner (Appeals)
UP Sales Tax Act Sales Tax 5.85 2006-2007 Tribunal
1.40 2006-2007 Dp. Commissioner

Refer Note No. 28(A) & 29

8. In our opinion on the basis of audit procedures and according to the informationand explanations given to us the Company has not defaulted in repayment of loans andborrowings to financial institutions banks government or dues to debenture holders.

9. During the year no monies have been raised by public offer of shares. Money raisedon term loans have been applied for the purposes for which loans were raised.

10. Based on the audit procedure performed and on the basis of information andexplanations provided by the management no fraud by the Company and no material fraud onthe Company by its officers or employees has been noticed or reported during the course ofthe audit.

11. On the basis of records and information and explanations made available managerialremuneration which has been paid or provided is in accordance with the requisite approvalsmandated under Section 197 read with Schedule V of the Act. (Read with Note No. 44)

12. In our opinion and according to information & explanation given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the order is notapplicable.

13. As per the information and explanations and records made available by themanagement of the Company and audit procedure performed for the related partiestransactions entered during the year the Company has complied with the provisions ofSection 177 and 188 of the Act where it applicable. As explained and as per records /details of related parties transactions are disclosed as per the applicable AccountingStandards.

14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully / partly convertibledebentures during the year. Accordingly paragraph 3(xiv) of the Order is not applicable.

15. On the basis of records made available to us and according to information andexplanations given to us the Company has not entered into noncash transactions with thedirectors or persons connected with him. Accordingly we are not offering comment withrespect to compliance of section 192 of the Act.

16. The Company is not required to be registered under 45-IA of the Reserve Bank ofIndia Act 1934.

For LODHA & CO.
Chartered Accountants
Firm Registration No. 301051E
(N.K. Lodha)
Place : New Delhi Partner
Date : 12th May 2016 Membership No. 85155

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF JK AGRI GENETICS LIMITED

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of JK AgriGenetics Limited (“the Company”) as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company’s policies the safeguarding of its assetsthe prevention 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.

Auditor’s 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 extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards

and the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 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 March 312016 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 LODHA & CO.
Chartered Accountants
Firm Registration No. 301051E
(N.K. Lodha)
Place : New Delhi Partner
Date : 12th May 2016 Membership No. 85155