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Raghuvansh Agrofarms Ltd.

BSE: 538921 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE865P01016
BSE LIVE 14:04 | 15 Dec 40.20 -2.10
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 40.20
PREVIOUS CLOSE 42.30
VOLUME 2500
52-Week high 101.00
52-Week low 36.10
P/E 13.09
Mkt Cap.(Rs cr) 48
Buy Price 0.00
Buy Qty 0.00
Sell Price 40.20
Sell Qty 2500.00
OPEN 40.20
CLOSE 42.30
VOLUME 2500
52-Week high 101.00
52-Week low 36.10
P/E 13.09
Mkt Cap.(Rs cr) 48
Buy Price 0.00
Buy Qty 0.00
Sell Price 40.20
Sell Qty 2500.00

Raghuvansh Agrofarms Ltd. (RAGHUVANSHAGRO) - Auditors Report

Company auditors report

TO THE MEMBERS OF RAGHUVANSH AGROFARMS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of RAGHUVANSHAGROFARMS LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation

Management’s Responsibility for the Standalone 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 standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

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 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 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 31 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 matters in the Notes to the financial statements:

i) Para No. 4 pertaining to Related Party Disclosure. And

ii) Para No. 8 pertaining to Disclosure in Two Subsidiary Companies.

Our opinion is not modified in respect of these matters.

Other Matter: NIL

Our opinion is not modified in respect of this matter.

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 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 [and with the returnsreceived from the branches not visited by us].

(e) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(f) 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 terms of Section164 (2) of the Act.

(g) 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 A".

(h) 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 - Refer Note XX to the financial statements; [or theCompany does not have any pending litigations which would impact its financial position]

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts for 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 Naval Kapur & Co.

Chartered Accountants

(FRN:05851C)

CA Naval Kapur

(Partner)

(Membership No.074587)

Place: Kanpur

Date: 30/05/2016

Report under Companies (Auditors’ Report) Order 2016 RAGHUVANSH AGROFARMS LIMITEDCIN: U40300DL1996PLC258176

Annexure A to the Auditors’ Report

The Annexure referred to in our report to the members of RAGHUVANSH AGROFARMS LIMITEDfor the year ended on March 31’ 2016.

We report that:

Clause (i):

(a) Whether the company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets?

Auditors’ Remarks:

Yes. Proper records have been maintained by the company showing full particularsincluding quantitative details of Fixed Assets.

(b) Whether these fixed assets have been physically verified by the management atreasonable intervals; whether any material discrepancies were noticed on such verificationand if so whether the same have been properly dealt with in the books of account?

Auditors’ Remarks:

Yes. The management has been verifying the fixed assets physically at reasonableintervals and no material discrepancies were noticed on such verifications.

(c) Whether all the immovable properties in the name of company?

Auditors’ Remarks :

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company following immovable properties are in thepossession of the company:-

LESSOR ADDRESS OF PROPERTY AGREEMENT DATE REMARK
Sanjeevani Fertilizers and chemicals (P) Ltd. Village- Gaur Pathak The Pokhrayan District-Ramabai Nagar- Bhoginpur- Old Kanpur 01.10.2014 This property is on lease and the lease agreement is the name of company
MP Audyogik Kendra Vikas Nigam (Indore) Limited Free Press House 1st Floor3/54 Press Complex Agra-Mumbai Marg Indore(M.P)-452008 02.05.2015 This property is on lease and the lease agreement is the name of company.

None of the properties as mentioned above have actually been acquired by the company.They are on lease. However the lease agreements for both the properties are in thecompany.

Clause (ii):

(a) Whether physical verification of inventory has been conducted at reasonableintervals by the management?

Auditors’ Remarks:

Yes. The management has conducted physical verification of inventories at reasonableintervals and no discrepancies were noticed on such verifications.

(b) Are the procedures of physical verification of inventory followed by the managementreasonable and adequate in relation to the size of the company and the nature of itsbusiness? If not the inadequacies in such procedures should be reported.

Auditors’ Remarks:

Yes. In our opinion the procedures of physical verification of inventory followed bythe management reasonable and adequate in relation to the size of the company.

(c) Whether the company is maintaining proper records of inventory and whether anymaterial discrepancies were noticed on physical verification and if so whether the samehave been properly dealt with in the books of account;

Auditors’ Remarks:

Yes. Proper records of inventory have been maintained by the company and no materialdiscrepancies have been noticed on its physical verification.

Clause (iii): Whether the company has granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act. If so

(a) Whether receipt of the principal amount and interest accrued also regular; and

Auditors’ Remarks:

Yes. The company has given loans to two of its subsidiaries as below:-

Loan To Repayment Start Date Amount of Loan (Rs.) Rate OF Interest
Kanpur Organics (P) Ltd 01.07.2018 20113500.00 Non-Interest Bearing
Sanjeevani Fertilizers (P) Ltd 01.07.2018 41365000.00 Non-Interest Bearing

The company has not yet started receiving the principal amount of such loans as therepayment starting date according to the Loan Agreements in both the cases is01.07.2018.

(b) If overdue amount is more than rupees one lakh whether reasonable steps have beentaken by the company for recovery of the principal and interest;

Auditors’ Remarks:

As repayment starting date is 01.07.2018 therefore there is no overdue amount towardsthe principal.

Clause (IV): Whether in respect of loans and advances the Company has complied withthe provisions of Sections 185 and 186 of the Act

Auditors’ Remarks:

In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act with respectto the loans and investments made.

Clause (V): In case the company has accepted deposits whether the directives issued bythe Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed there under where applicable havebeen complied with? If not the nature of contraventions should be stated; If an order hasbeen passed by Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any court or any other tribunal whether the same has been complied with or not?

Auditors’ Remarks:

Company has not accepted any deposit from the public during the year.

Clause (VI): Where maintenance of cost records has been specified by the CentralGovernment under subsection(1) of section 148 of the Companies Act whether such accountsand records have been made and maintained?

Auditors’ Remarks:

Maintenance of cost records has not been specified Central Government under subsection(1) of section 148 of the Companies Act.

Clause (VII): Whether the company is regular in depositing undisputed statutory duesincluding provident fund employees’ state insurance income-tax sales-tax servicetax duty of customs duty of excise value added tax cess and any other statutory duesto the appropriate authorities and if not the extent of the arrears of outstandingstatutory dues as on the last day of the financial year concerned for a period of morethan six months from the date they became payable shall be indicated.

Auditors’ Remarks:

Yes. The company is regular in depositing all such undisputed statutory dues with theappropriate authorities.

(b) in case dues of income tax or sales tax or wealth tax or service tax or duty ofcustoms or duty of excise or value added tax or cess have not been deposited on account ofany dispute then the amounts involved and the forum where dispute is pending shall bementioned. (A mere representation to the concerned Department shall not constitute adispute).

Auditors’ Remarks:

There are no such disputed dues.

Clause (VIII): Whether the company has defaulted in repayment of loans or borrowings toa financial institution bank government or dues to debenture holders? If yes the periodand the amount of default to be reported. (In case of defaults to banks financialinstitutions and government lender wise details to be provided).

Auditors’ Remarks:

The Company does not have loans and borrowings from financial institution bank andgovernment during the year. Therefore this clause of order is not applicable.

Clause (IX): Whether moneys raised by way of initial public offer or further publicoffer (including debt instruments) and the term loans were applied for the purpose forwhich those were raised. If not the details together with delays or default andsubsequent rectification if any as may be applicable be reported.

Auditors’ Remarks:

The company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and the term loans during the year. Therefore thisclause is not applicable.

Clause (X): Whether any fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the year. If yes the nature andthe amount involved is to be indicated.

Auditors’ Remarks:

According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

Clause (XI): Whether managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act? If not state the amount involved and steps taken by the companyfor securing refund of the same;Whether term loans were applied for the purpose for whichthe loans were obtained?

Auditors’ Remarks:

According to the information and explanations give to us and based on our examinationof the records of the Company the Company has paid / provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

Clause (XII): Whether the Nidhi Company has complied with the Net Owned Funds toDeposits in the ratio of 1:20 to meet out the liability and whether the Nidhi Company ismaintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014to meet out the liability.

Auditors’ Remarks:

In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

Clause (XIII): Whether all transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards;

Auditors’ Remarks:

According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties are in compliancewith Sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

Clause (XIV): Whether the company has made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under reviewand if so as to whether the requirement of section 42 of the Companies Act 2013 havebeen complied with and the amount raised have been used for the purposes for which thefunds were raised. If not provide the details in respect of the amount involved andnature of noncompliance;

Auditors’ Remarks:

According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

Clause(XV)

Whether the company has entered into any non-cash transactions with directors orpersons connected with him and if so whether the provisions of section 192 of CompaniesAct 2013 have been complied with.

Auditors’ Remarks:

According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

Clause(XVI):Whether the company is required to be registered under section 45-IA of theReserve Bank of India Act 1934 and if so whether the registration has been obtained.

Auditors’ Remarks:

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

For Naval Kapur & Co.

Chartered Accountants

FRN:005851C

CA Naval Kapur

Chartered Accountant

Membership No.:074587

Place:Kanpur

Date:-30/05/2016

Annexure B to the Auditors’ Report

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 RAGHUVANSHAGROFARMS LIMITED (‘the Company’) as of 31 March 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’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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 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 were 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’ 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 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 ofthe Management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Company’s assets that could have a material effect on the financialstatements.

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 31 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 Naval Kapur & Co.

Chartered Accountants

FRN:005851C

CA Naval Kapur

Chartered Accountant

Membership No.:074587

Place:Kanpur

Date:-30/05/2016