To the members of narmada gelatines limited
Report on the financial statements
We have audited the accompanying financial statements of narmada gelatines limited ("thecompany") which comprise the balance sheet as at 31st march 2017 the statement ofprofit and loss and the cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Managements responsibility for the financial statements
The companys 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. The management of the companies are responsible for maintenance of adequateaccounting records in accordance with the provisions of the act for safeguarding theassets of the company and for preventing and detecting frauds and other irregularities;the selection and application of appropriate accounting policies making judgments andestimates that are reasonable and prudent; and the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
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 theact and the rules made thereunder.
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 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 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 companys directors as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence obtained is sufficient and appropriate to provide abasis for our audit opinion on the financial 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 of the state of affairs of the company as at 31stmarch 2017 its profits and its cash flows for the year ended on that date.
Report on other legal and regulatory requirements
1. 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 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 we give in the "annexure a" statement on the matters specified inparagraphs 3 and 4 of the order to the extent applicable
2. As required by section 143(3) of theact we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept so far as it appears from our examination ofthose books; c. The balance sheet statement of profit and loss and cash flow statementdealt with by this report are in agreement with the books of account; d. In our opinionthe aforesaid financial statements comply with theaccounting standards specified undersection 133 of theact read with rule 7 of the companies (accounts) rules 2014; e. On thebasis of written representations received from the directors as on march 31 2017 taken onrecord by the board of directors of the company none of the directors of the company isdisqualified as on march 31 2017 from being appointed as a director in terms ofsub-section (2) of section 164 of theact.
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 beincluded in theauditors report in accordance with rule 11 of the companies (auditand auditors) rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us: (i) the company has disclosed the impact ofpending litigations on its financial position in its financial statements refernote 29 to the financial statements.
(ii) the company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) there have been certain delays in transferring amounts required to betransferred to the investor education and protection fund by the company - refer note 39to the financial statements.
(iv) the company has provided requisite disclosures in financial statements (refer note37 on financial statements) as to holdings as well as dealings in specified bank notesduring the period from november 08 2016 to december 30 2016 and these are in accordancewith the books of accounts maintained by the company.
|For t r chadha & co llp |
|Firm registration no.: 006711n/n500028 |
|Vikas kumar |
|Membership no: 75363 |
|Place: jabalpur |
|Date: 23 rd may 2017 |
Annexureato the independentauditors report on financial statements
The annexure-a referred to in our report of even date to the members of narmadagelatines limited3(the company)3on the financial statements for the yearended march 3132017.3we report that:
(a) the company has maintained proper records showing full particulars including thequantitative details and situation of fixed assets. (b) as per the information andexplanation given to us the company has physically verified its fixed assets in phasedmanner designed to cover all the fixed assets once in every 3 years on rotation basiswhich in our opinion is reasonable having regard to the size of the company and nature ofthe assets. No material discrepancies were noticed on such verifications.
(c) according to the information and explanation given to us and on the basis of ourexamination of the records of the company in case of immovable properties (freehold landand buildings) as disclosed in the note 10 fixed assets of the financial statements thetitle deeds are held in the name of the company.
2. The inventory (except inventory in transit the subsequent confirmation of which hasbeen obtained) has been physically verified by the management during the year. In ouropinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and records were not material in relation to theoperations of the company and the same has been properly dealt with in the books ofaccount.
3. As informed to us the company has not granted any loans secured or unsecured tocompanies firms limited liability partnership or other parties covered in registermaintained under section 189 of companies act 2013. Accordingly clause (iii) (a) (b)and (c) of para 3 of the companies (auditors report) order 2016 are not applicableto the company.
4. As informed to us the company has not given any loans investments guarantees andsecurities referred in section 185 and 186 of the companies act 2013. Accordingly clause(iv) of para 3 of the companies (auditors report) order 2016 are not applicable tothe company.
5. The company has not accepted any deposits from the public within the meaning ofsection 73 to 76 of the act and rules framed there under.
6. As explained to us the maintenance of cost records has not been prescribed by thecentral government under section 148 (1) of the companiesact 2013 for any of the goodsmanufactured by the company.
7. (a) according to the information and explanations given to us and on the basis ofour examination of the records of the company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including employees state insuranceincome tax value added tax sales tax service tax duty of excise provident fund andother material statutory dues have been generally regularly deposited during the year bythe company with the appropriate authorities. As explained to us the company did not haveany dues on account of duty of customs and cess.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance service tax salestax value added tax duty of excise income tax and any other material statutory dueswere in arrears as at 31st march 2017 for a period of more than six months from the datethey became payable.
(b) according to the information and explanations given to us the disputed dues onaccount of income tax excise duty and sales tax which have not been deposited as at 31stmarch 2017 is as under:
|Nature of statute ||Amount* ||Period to ||Forum at which |
| ||( Lacs) ||Which it relates ||It is pending |
|Income tax ||50.94 ||2000-01 ||High court |
| ||32.69 ||2001-02 ||High court |
| ||37.53 ||2002-03 ||High court |
| ||36.08 ||2011-12 ||Commissionerappeals |
| ||5.50 ||2012-13 ||Commissionerappeals |
|Total ||162.74 || || |
|Excise duty ||228.05 ||2000-02 ||High court |
| ||11.72 ||2005-09 ||Commissioner /additional commissioner |
| ||0.34 ||2014-15 ||Cestat |
|Total ||240.11 || || |
|Sales tax ||1.32 ||2004-05 ||Appellate tribunal bhopal |
| ||8.72 ||2005-06 ||Appellate tribunal bhopal |
| ||2.63 ||2009-10 ||Appellate tribunal bhopal |
|Total ||12.67 || || |
*net of amount paid under protest/appeals deposits towards excise duty and sales taxdoes amount to 13.57 lacs and 21.24 lacs respectively.
8. The company has not obtained any loans from financial institution / bank /government /debenture holders which are outstanding as on 31st march 2017 and hence thereis no question of any default in the same.
9. According to the information and explanations given to us the company has notraised any money by way of public issues and term loan during the year.
10. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in india andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.
11. According to the information and explanations given to us and based on ourexamination of the records of the company has been paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with schedule v of theact.
12. The entity is not a nidhi company. Therefore the provisions of clause (xii) ofpara 3 of the companies (auditors report) order are not applicable to the company.
13. The company has entered into transactions with related parties in compliance withthe provisions of section 177 and 188 of the act. The details of such related partytransactions have been disclosed in the financial statements as required under accountingstandard (as) 18 related party disclosures specified under section 133 of theact.
14. According to the information and explanations given 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.
15. The company has not entered into any non-cash transaction with the directors orpersons connected with him as contemplated under section 192 of the act. Accordingly theprovisions of clause (xv) of para 3 of the companies (auditors report) order 2016are not applicable to the company.
16. The company is not required to be registered under section 45-ia of the reservebank of india act 1934. Accordingly the provisions of clause (xvi) of para 3 of thecompanies (auditors report) order 2016 are not applicable to the company.
For t r chadha &3co llp
Firm registration no.:3006711n/n500028
Date: 23rd may 2017
Annexure b to the independent auditors report on financial statements
The annexure b referred to in our report of even date to the members of narmadagelatines limited ("the company") on the financial statements for the year ended31st march 2017.
Report on the internal financial controls under clause (i) of sub-section 3 of section143 of the companies act 2013 (theact)
We have audited the internal financial controls over financial reporting of armadagelatines limited ("the company") as of 31st march 2017 in conjunction with ouraudit of the financial statements of the company for the year ended on that date.
Managements responsibility for internal financial controls
The companys management is responsible for establishing and maintaining internalfinancial control 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 companys 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 companiesact 2013.
Our responsibility is to express an opinion on the companys 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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 auditors 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 companys internal financial controlssystem over financial reporting.
Meaning of internal financial controls over financial reporting
A companys 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.acompanys internal financial control overfinancial reporting includes those policies and procedures that i. Pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; ii. 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 authorisations ofmanagement and directors of the company; and iii. Provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompanys 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.
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 31 2017 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 ofcharteredaccountants of india.
|For t r chadha & co llp |
|Chartered accountants |
|Firm registration no.:3006711n/n500028 |
|Vikas kumar |
|Membership no:375363 |
|Date: 23rd may 2017 |