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Saptarishi Agro Industries Ltd.

BSE: 519238 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE233P01017
BSE LIVE 11:15 | 18 Oct 4.08 0
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.08
PREVIOUS CLOSE 4.08
VOLUME 100
52-Week high 4.08
52-Week low 1.18
P/E
Mkt Cap.(Rs cr) 14
Buy Price 4.08
Buy Qty 49900.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.08
CLOSE 4.08
VOLUME 100
52-Week high 4.08
52-Week low 1.18
P/E
Mkt Cap.(Rs cr) 14
Buy Price 4.08
Buy Qty 49900.00
Sell Price 0.00
Sell Qty 0.00

Saptarishi Agro Industries Ltd. (SAPTARISHIAGRO) - Auditors Report

Company auditors report

To the Members of

M/s Saptarishi Agro Industries Limited

Report on Financial Statements

1. We have audited the accompanying standalone financial statements of Saptarishi AgroIndustries Limited (the "Company") which comprise the Balance Sheet as at March31 2015 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statement

2. The Company’s Board of Directors is responsible for the matters stated insection 134(5) of the companies Act 2013 ("the Act") with respect to thepreparation of these Standalone 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 2013 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 asset of the company andfor preventing and detecting frauds and others irregularities; selection & applicationof appropriate accounting policies; Making Judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor’s Responsibility

3. 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 theaccounting and auditing standards and matters which are required to be included in theaudit report under provisions of the

Act and the rule made there under.

4. 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.

5. An audit involves performing procedures to obtain audit evidence about the amountsand 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 but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the company’s directors aswell as evaluating the overall presentation of the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on standalone of the financial Statements.

Basis of Qualified Opinion

a) As mentioned in note 23 (2) (b) of the financial statements regarding non provisionof Rs 683060/- being amount payable to Tamil Nadu Pollution control Board. ThoughCompany has disputed the amount payable to the Tamil Nadu Pollution Control Board it hasnot taken any legal remedy and accordingly no provision has been made by the Company inthis regard. As such we are unable to express any opinion as to the effect thereof on thefinancial statements for the year.

b) As mentioned in note no 23 (2) (c) of the financial statements the balances of someof the trade receivables Advance to Suppliers Trade Payables and Advance from customersand others are subject to confirmation. As there has been no activity since 4 years andconfirmation from parties has not been received as such we are unable to express anyopinion whether the amounts are recoverable or not and as to the effect thereof on thefinancial statements for the year.

c) As mentioned in note no 23 (2) (d) of the financial statements the Company’sCarry forward losses is more than 50% of its Net Worth and has been incurring Cash Lossescontinuously. This factor along with other matters such as Non availability of PowerClosure of Production since February 2011 (there was no activity of growing Mushroom bythe Company since February 2011) this fact raise doubt that the Company will be able tostart production of Mushrooms.

d) The Company has Settled all its employees except 1 employee as per IndustrialDisputes Act 1947 12 (3) agreement with Workers’ Union (all the workers and theiraccount have been Settled in the financial year ended 31.3.2013and 31.3.2014. Further nonew employees have been recruited during the year ended 31.3.15 this fact raise doubtthat the Company will be able to continue as a going Concern. The Company’s abilityto continue as a going concern is dependent upon successful restructuring and revival ofits business. In Case the going concern concept is vitiated necessary adjustments will berequired on the carrying amount of Assets and Liabilities which are not ascertainable.

The Consequential effect of sub para (b) (c) and (d) above on assets and liabilitiesas at 31st March 2015 and the Losses for the year ended 31st March 2015 are notascertainable. Had the effect of above as stated in sub para (a) had been given the lossfor the year would be higher by Rs 683060/-

7. Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect of the matters described in the basis of qualifiedopinion paragraph as mentioned above and read together with other notes theaccompanying financial statements give the information required by the Act in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:

a) In the case the Balance Sheet of the state of affairs of the Company as at March312015

b) In the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and

c) In the case of the Cash Flow Statement of the cash flow for the year ended on thatdate.

Other Matter

We draw attention to the following facts

a) During the year under review there was no activity of growing mushrooms (the companyhas not carried on any business activity since February 2011).

b) There is only 1 employee on the Company’s Roll as on 31.03.2015.

c) The TNEB has disconnected power supply to the Company’s Plant since 4 years.Due to Non availability of Power and due to Non Maintenance of the Plant & Machinerysince last 4 years more importantly it’s machinery buildings boundary fencing andother infrastructure have been badly deteriorated.

d) The total value of Inventories as on 31.3.15 was Rs 1188247/-. This includes rawmaterials Stores & Spares and other Inventories. As there is no production activitysince February 2011 the inventories of the Company are old and obsolete.

Report on Other Legal and Regulatory Requirements

8. As required by the Companies (Auditor’s Report) Order 2015 ("theorder") issued by the Central Government of India in terms section 143(11) of theAct we give in annexure a statement on matters specified in paragraph 3 and 4 of theorder to the extent applicable.

9. 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 purpose of our audit;

b) In our opinion proper books account as required by law have been kept by theCompany so far as appears from our examination of those books;

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statements dealt withby this Report are in agreement with the books of account;

d) 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.

e) On the basis of written representation received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors except ThiruDilsher Singh (who has been disqualified for appointment as Director for the reason of hisnot attending board meetings during the year and has resigned from the post of ManagingDirector but the board has not accepted the resignation and has kept the matter inabeyance) is disqualified as on March 31 2015 from being appointed as a director interms of section 167 (1)(b) of the Companies Act 2013.

f) 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 explanation given to us

(1) The company has in accordance with the generally accepted accounting practicedisclosed the impact of pending litigation on its financial position in its financialstatement and the amount has been quantified in the note no 23 (2) (a) and the Companyhas not provided for the Liability in the books.

(2) The company did not have any long term contract including derivative contracts forwhich there were any material foreseeable losses under the applicable law or accountingstandards.

(3) There has been no delay in transferring amounts required to be transferred to theinvestor education & protection fund by the company.

Place: Chennai For K.Mahaveer & Co.
Date: 29.05.2015 Chartered Accountants
Firm Registration No 006740S
Sd/-
(K.Mahaveer)
Proprietor
Membership No 203601.
Firm Registration No 006740S

ANNEXURE TO INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements inthe Independent Auditor’s Report of even date to the members of M/s Saptarishi AgroIndustries Limited on the financial statements for the year ended March 31 2015)

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

(b) All the assets have not been physically verified by the management during the yearbut there is a system of verification which in our opinion is reasonable having regard tosize of the company and nature of the assets. No material discrepancies were noticed onsuch verification.

(ii) (a) The stocks were physically verified by the Management In our opinion thefrequencies of such verification is reasonable.

(b) The procedure of physical verification of stocks followed by the management isreasonable and adequate in relation to the size of Company and its nature of the business.

(c) The company is maintaining the proper records of inventories. The discrepanciesnoticed between the physical stocks and books records were not material

(iii) (a) The Company had not granted loan to / from the Companies firms and partiesfrom Companies listed in the register maintained under section 189 of the Companies Act2013 except current account of Holding and Related Company which has advanced the amountto the Company

(b) There is no interest charged either way on loans and balance of Holding and RelatedCompany

(c) Loans and advances in nature of loans have been given to employees and others whoare repaying the amount as stipulated.

(d) There is no overdue amount of loan taken from or granted to companies listed in theregister maintained under section 189 on the Companies Act 2013.

(iv) In our opinion and according to the information and explanation given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regard to purchase of inventory Fixed assets and with regardto the sale of goods and services.

(v) Further during the course of our audit we have not come across any instances ofmajor weaknesses in internal control that require correction and so continued withoutcorrection.

(vi) (a) Based on the information and explanations given to us we are of the opinionthat the transaction if any that need to be entered into the register maintained u/s 189of the Companies Act 2013 have been so entered.

(b) In our opinion and according to the information and explanation given to us thereare no transactions of purchase of goods and material and sales of goods materials andservices made in pursuance of contracts or arrangements entered in the register maintainedunder section 189 of the Companies Act 2013 aggregating during the year to Rupees Fivelakhs or more in respect of each party which are prejudicial to the interest of theCompany.

(vii) In our opinion and according to the information and explanations given to us thecompany has not accepted the deposits which attract the provisions of sections 58A and58AA of the Companies Act 1956 and the Companies (Acceptance of Deposits) Rules 1975with regard to the deposits accepted from the public.

(viii) In our opinion the company has an internal audit system commensurate with thesize and nature of its business.

(ix) In our opinion and according to information and explanations given to us therules made by the Central Government for the maintenance of cost records under section 148of the Companies Act 2013 are not applicable to the Company.

(x) (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues provident fund custom duty excise duty cess and other materialstatutory dues applicable if any to it and there have been no serious delay (Except fordelay in depositing provident fund and TDS dues to appropriate authorities on a fewoccasions).

(b) According to the information and explanation given to us there are no dues ofincome tax customs duty wealth tax excise duty and cess which have not been deposited onaccount of any dispute.

(c) In our opinion there is no amount required to be transferred to the InvestorEducation and Protection Fund in accordance with the relevant provisions of the CompaniesAct and rules made there under.

(xi) According to the information and explanations furnished to us the Company has anaccumulated carried forward losses are Rs.289119480/- which are in excess of fiftypercent of its net worth. The Company has incurred Cash losses during the financial yearunder report and the immediately preceding financial year.

(xii) According to the information furnished to us the company has not taken anyworking capital loans from the bank.

(xiii) According to the information and explanations furnished to us the company hasnot given guarantees for loans taken by others from banks or financial institutions.

(xiv) According to the information and explanations furnished to us the company hasnot taken any term loans during the year.

(xv) According to the information and explanation furnished to us and based on theaudit procedures generally adopted by us we report that no fraud on or by the company norhave we been informed by the management of any such instance being noticed or reportedduring the year.

Place: Chennai For K.Mahaveer & Co.
Date: 29.05.2015 Chartered Accountants
Firm Registration No 006740S
Sd/-
(K.Mahaveer)
Proprietor
Membership No 203601.
Firm Registration No 006740S