You are here » Home » Companies » Company Overview » Aimco Pesticides Ltd

Aimco Pesticides Ltd.

BSE: 524288 Sector: Agri and agri inputs
NSE: AIMCOPEST ISIN Code: INE008B01013
BSE 14:21 | 16 Jun 113.35 -4.70
(-3.98%)
OPEN

118.90

HIGH

123.40

LOW

111.50

NSE 05:30 | 01 Jan Aimco Pesticides Ltd
OPEN 118.90
PREVIOUS CLOSE 118.05
VOLUME 30627
52-Week high 124.80
52-Week low 56.40
P/E 23.13
Mkt Cap.(Rs cr) 109
Buy Price 113.40
Buy Qty 36.00
Sell Price 114.00
Sell Qty 55.00
OPEN 118.90
CLOSE 118.05
VOLUME 30627
52-Week high 124.80
52-Week low 56.40
P/E 23.13
Mkt Cap.(Rs cr) 109
Buy Price 113.40
Buy Qty 36.00
Sell Price 114.00
Sell Qty 55.00

Aimco Pesticides Ltd. (AIMCOPEST) - Auditors Report

Company auditors report

To the Members of

Aimco Pesticides Limited

Report on the audit of the Standalone Financial Statements

OPINION

1. I have audited the accompanying standalone financial statements of Aimco PesticidesLimited (‘the Company') which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

2. In my opinion and to the best of my information and according to the explanationsgiven to me the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (‘the Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in Indiaincluding Indian Accounting Standards (‘Ind AS') specified under Section 133 of theAct of the state of affairs of the Company as at 31st March 2020 its profit includingother comprehensive income its cash flows and the changes in equity for the year ended onthat date.

BASIS FOR OPINION

3. I conducted the audit in accordance with the Standards on Auditing (‘SAs')specified under Section 143(10) of the Act. My responsibility under those Standards isfurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of my report. I am independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI')together with the ethical requirements that are relevant to my audit of the financialstatements under the provisions of the Act and the rules thereunder and I have fulfilledmy other ethical responsibilities in accordance with these requirements and the Code ofEthics.

I believe that the audit evidence obtained is sufficient and appropriate to provide abasis for my opinion.

EMPHASIS OF MATTER

4. Due to various restrictions imposed under COVID-19 outbreak it was impracticablefor me to physically attend the inventory counting as on 31st March 2020. Therefore Ihave relied on details as compiled by the management based on the physical verificationconducted by them to confirm the existence and condition of inventory at the year-end. Myopinion is not modified in respect of this matter.

KEY AUDIT MATTER

5. Key audit matter is the matter that in my professional judgment was of mostsignificance in the audit of the standalone financial statements of the current period.This matter was addressed in the context of the audit of the standalone financialstatements as a whole and in forming my opinion thereon and I do not provide a separateopinion on this matter.

6. I have determined the matter described below to be the key audit matter to becommunicated in my report.

Key audit matter How the matter was addressed in the audit
Physical verification of Inventories In response to this key matter the audit included amongst others the following principal audit procedures:
A) Obtaining an understanding of and assessing the procedures of physical verification followed considering the related practical constraints;
B) Verification of consumption or sale of the inventory subsequent to the year-end;
The Company's inventories which include raw materials work-in-progress finished goods and stock-in-trade at year- end was 5819.15 lakhs representing 44.9% of the Company's total assets. All items of inventories are at its manufacturing unit at District Ratnagiri State of Maharashtra. The finished goods inventory is also kept at its sales offices located across India. C) Implementation and operating effectiveness of management's key internal controls relating to physical verification of inventories including identification of obsolete and slow- moving inventories.
Due to various restrictions imposed under COVID-19 outbreak it was impracticable for me to physically attend the inventory counting as at 31st March 2020 and hence alternative audit procedures were performed. D) Obtained details / documents of existence and conditions of physical inventories as carried out by the management.
I identified this matter as key matter in the audit due to the circumstances in which physical verification of inventories was conducted.

OTHER INFORMATION

7. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and the auditor's report thereon. The Annual report is expectedto be made available after the date of this auditor's report.

8. My opinion on the financial statements does not cover the other information and Iwill not express any form of assurance conclusion thereon.

9. In connection with my audit of the financial statements my responsibility is toread the other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or my knowledge obtained in the audit or otherwise appears to be materiallymisstated. When I read the Annual Report and conclude that there is a materialmisstatement therein I am required to communicate the matter to those charged withgovernance.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

10. The Company's management and Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsprescribed under section 133 of the Act.

11. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 were 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.

12. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

13. The Board of Directors is also responsible for overseeing the Company's financialreporting process.

AUDITOR'S RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATEMENTS

14. My objective is to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes my opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

15. As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout the audit. I also

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for my opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act I am also responsible for expressing my opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If I conclude that a material uncertainty existsI am required to draw attention in my report to the related disclosures in the financialstatements or if such disclosures are inadequate to modify my opinion. My conclusionsare based on the audit evidence obtained up to the date of my report. However futureevents or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieve fair presentation.

16. I communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that I identify during the audit.

17. I also provide those charged with governance with a statement that I have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on myindependence and where applicable related safeguards.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

18. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in terms of section 143(11) of the Act astatement on the matters specified in paragraphs 3 and 4 of the Order is given to theextent applicable in ‘Annexure A'.

19. As required by Section 197(16) of the Act I report that to the best of theinformation and explanation given the remuneration paid by the Company to its directorsduring the year is in accordance with the provisions of Section 197 of the Act.

20. Further to the comments in Annexure A as required by Section 143(3) of the Act Ireport that:

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

b) In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from the examination of those books.

c) The standalone financial statements dealt with by this Report are in agreement withthe books of account.

d) In my opinion the aforesaid financial statements comply with the Ind AS prescribedunder Section 133 of the Act.

e) On the basis of the written representation received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to the separate 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 in Note 34.2 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.

Place: Mumbai For J Dwarkadas & Co.
Date: 18th July 2020 Chartered Accountants
Firm Registration No. 102806W
Jagdish Shah
Proprietor
(Membership Number 031827)
UDIN: 20031827AAAAAE5181

ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 18 under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of AimcoPesticides Limited (‘the Company') on the standalone financial statements as of andfor the year ended 31st March 2020]

Report on Companies (Auditor's Report) Order 2016

On the basis of such checks as considered appropriate and in terms of the informationand explanation furnished I state as under:

(i) (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 during the year inaccordance with the phased programme of verification adopted by the Company and nomaterial discrepancies were noticed on such verification;

(c) The title deed of the immovable property included in fixed assets and owned by theCompany is held in the name of the Company;

(ii) As explained the management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification. Also refer to my comments in paragraph 4 of the Report on the auditof the Standalone Financial Statements;

(iii) (a) The Company has given deposit against leased premises to a firm covered inthe register maintained under section 189 of the Act;

(b) In respect of the aforesaid deposit the same is repayable on surrender of leasedpremises;

(c) The aforesaid deposit is not overdue for payment;

(iv) In my opinion the Company has complied with the provisions of sections 185 and186 of the Act in respect of investments made. The Company has not granted any loan orprovided any guarantee to which the provisions of sections 185 or 186 of the Act wouldapply;

(v) In my opinion the Company has complied with the provisions of Section 73 to 76 andother relevant provision of the Act and the rules framed thereunder. According to theinformation and explanation given no order has been passed by the Company Law Board orNational Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunalrelated to compliance with above provisions;

(vi) I have broadly reviewed the books of account maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Governmentunder section 148(1) of the Act and is of the opinion that prima-facie the prescribedaccounts and cost records have been made and maintained. However I have not made adetailed examination of the same with a view to determine whether they are accurate orcomplete;

(vii) (a) According to the records of the Company examined the Company is regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other material statutory dues and there are noundisputed statutory dues outstanding as at 31st March 2020 for a period of more than sixmonths from the date they became payable except dues under the Income tax Act 1961 ashereunder:

Nature of dues Amount (Rs.) Year to which the amount relates
Fringe benefit tax 729412 2008-09
Advance instalment of Income tax 6621410 2019-20

(b) According to the records of the Company examined there are no dues of income taxsales tax service tax duty of customs duty of excise or value added tax which have notbeen deposited on account of any dispute except dues under the Customs Act 1962 ashereunder:

Nature of dues Amount (Rs.) Year to which the amount relates Forum where dispute is pending
Custom duty 2126820 2011-12 Customs Excise Service tax appellate Tribunal
Custom duty 1234862 2011-12 Joint Commissioner of Customs (Appeal)

(viii) The Company has not defaulted in repayment of loans or borrowing to a financialinstitution. The Company has neither availed loans nor borrowings from a bank orGovernment nor issued any debentures;

(ix) Money raised by way of term loans has been applied for the purpose for which thesame was raised. The Company has not raised any money by way of initial public offer /further public offer;

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements no fraud of any material amount by the Company oron the Company by its officers or employees has been noticed or reported during the year;

(xi) In my opinion the Managerial remuneration for the year has been paid in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act;

(xii) In my opinion the Company is not a nidhi company. Therefore clause (xii) of theOrder is not applicable to the Company;

(xiii) In my opinion transactions with the related parties are in compliance withsection 177 and 188 of the Act where applicable and the details have been disclosed inthe notes to financial statements as required by the applicable accounting standards;

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or debentures. Accordingly clause 3(xiv) of the Order is notapplicable;

(xv) According to the information and explanations given the Company has not enteredinto any non-cash transactions with its directors or persons connected with him;

(xvi) The Company is not required to be registered under section 45- IA of the ReserveBank of India Act 1934.

Place: Mumbai For J Dwarkadas & Co.
Date: 18th July 2020 Chartered Accountants
Firm Registration No. 102806W
Jagdish Shah
Proprietor
(Membership Number 031827)
UDIN: 20031827AAAAAE5181

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 20(f) under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of AimcoPesticides Limited on the standalone financial statements for the year ended 31st March2020]

Report on the Internal Financial Controls under Section 143(3)(0 of the Companies Act2013 ("the Act")

I have audited the internal financial controls with reference to financial statementsof Aimco Pesticides Limited ("the Company") as of 31st March 2020 inconjunction with the audit of the standalone financial statements of the Company for theyear ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's Board is responsible for establishing and maintaining internal financialcontrols based on the internal controls with reference to financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(‘the Guidance Note') issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding 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 Act.

AUDITOR'S RESPONSIBILITY

My responsibility is to express an opinion on the Company's internal financial controlswith reference to financial statements based on the audit. I conducted the audit inaccordance with the Guidance Note and the Standards on Auditing specified under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. Those Standards and the Guidance Note require that I comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

The audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. My audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto 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 withreference to financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that:

1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIALSTATEMENTS

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

OPINION

For effective operation the Company's internal financial controls with reference tofinancial statements as at 31st March 2020 are in the process of being formalised basedon the internal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote.

Place: Mumbai For J Dwarkadas & Co.
Date: 18th July 2020 Chartered Accountants
Firm Registration No. 102806W
Jagdish Shah
Proprietor
(Membership Number 031827)
UDIN: 20031827AAAAAE5181