The Members of Ambani Organics Limited
1. We have audited the accompanying standalone financial statements of AmbaniOrganics Limited which comprise the Balance Sheet as at 31st March 2019Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
2. Management is responsible for the matters in section 134(5) of the Companies Act2013 ("the Act") with respect to the preparation of these financial statementsthat give a true and fair view of the financial position financial performance and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy 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.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone financial statements are free from material misstatement. An auditinvolves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor s judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company s preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company s Directors as well as evaluating the overall presentation ofthe financial statements.
4. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion. In our opinion and to the best of our informationand according to the explanations given to us the financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India: a) in the case ofthe Balance Sheet of the state of affairs of the Company as at March 31 2019. b) in thecase of Profit & Loss Account of the loss for the year ended on that date; and c) Inthe case of Cash Flow Statement of the cash flows for the year ended on that date.
Report on Legal and other Regulatory Requirements
1. As required by Companies (Auditor s Report) Order 2016 issued by the centralgovernment of India in terms of subsection (11) of section 143 of the act we give in the" Annexure 1" a statement on the matters specified in the order.
2. As required by section 143 (3) of the Act we report that:
a) We have sought and obtained all information and explanations which to the best ofour knowledge and belief were necessary for the purpose of our audit.
b) In our opinion proper books of 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 Statement dealt withby this report are in agreement with the books of account
d) In our opinion the Balance Sheet Statement of Profit and Loss and the Cash FlowStatement comply with the Accounting Standards specified under section 133 Act read withRule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31st March2019 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2019 from being appointed as a director in terms of section 164(2) ofthe Companies Act 2013.
f) With respect to the adequacy of Internal Financial controls over financial reportingof company and the operating effectiveness of such controls refer to our separate reportin "Annexure-2" to this report.
g) With respect to the other matters included in the Auditor s Report and to our bestof our information and according to the explanations given to us
i. The Company does not have pending litigation.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
|For Shambhu Gupta & Co. |
|Chartered Accountants |
|FRN No.:- 007234C |
|CA. Rajkumar Khatod |
|M. No. 133612 |
|Place: Mumbai |
|Date: May 25th 2019 |
THE ANNEXURE REFEREED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OFTHE COMPANY ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31st MARCH 2019
Re: Ambani Organics Limited ( the Company )
On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us during the course of our audit we report that:
(i) (a) The Company has maintained the proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us all fixed assets of theCompany have been physically verified by the management during the year and the proceduresof physical verification followed by the management in our opinion was reasonable havingregard to the size of the Company and the nature of its assets and no materialdiscrepancies were noticed during such verification.
(c) According to information & explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.
(ii) The inventories have been physically verified at reasonable intervals during theyear by the management. The discrepancies noticed on physical verification between thephysical stock and book records were not material and have been properly dealt with in thebooks of accounts.
(iii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the company has granted loans to two parties coveredin the register maintained under section 189 of the Companies Act 2013.
(a) The terms & Condition of the grant of such loans are not prejudicial to thecompany s interest.
(b) There is no repayment schedule for payment of principle and interest between boththe companies Hence the provision of clause (b) and (c) are not applicable to company.
(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans and advances made.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public. Hence the provisions of this clauseare not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records underSection 148(1) of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not made a detailedexamination of the records.
(vii) (a) The Company is regular in depositing with appropriate authorities allundisputed statutory dues
(b) According to the information and explanation given to us there are no dues onaccount of Customs duty GST and Cess which have not been deposited on account of anydisputes.
(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to any Bank or financial institutionsduring the year.
(ix) In our opinion and according to the information and explanations given to us theterm loan taken by the company has been applied for the purpose for which they wereraised.
(x) In our opinion and according to the information and explanations given to us thereis no any fraud by the company or any fraud on the Company by its officers/ employees hasbeen noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us sec197 read with schedule V of the companies act 2013 dealing with managerial remunerationis not applicable to the company.
(xii) The company is not a Nidhi Company so the provision of this clause is notapplicable to company.
(xiii) All transactions with the related parties are in compliance with Section 188 ofCompanies Act 2013 and have been disclosed in the Financial Statements as required by theaccounting standards and Companies Act 2013. As regards to Sec 177 of Companies Act 2013dealing with the Audit Committee is not applicable to the company.
(xiv) During the year the Company has not made any preferential allotment/ Privateplacement of shares or fully or partly convertible debenture during the year.
(xv) In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him so provisions of Section 192 of Companies Act 2013 have been complied with.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
|For Shambhu Gupta & Co. |
|Chartered Accountants |
|FRN No.:- 007234C |
|CA. Rajkumar Khatod |
|M. No. 133612 |
|Place: Mumbai |
|Date: May 25th 2019 |
"ANNEXURE 2" TO THE INDEPENDENT AUDITOR S REPORT REFERRED TO IN
PARAGRAPH 2(F) UNDER THE HEADING "REPORT ON OTHER LEGAL & REGULATORYREQUIREMENTS" OF OUR REPORT OF EVEN DATE
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 the Companyas of 31 March 2019 in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date.
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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India (ICAI ). These responsibilities include the design implementation and maintenance ofadequate 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.
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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls and both issued by the ICAI. Because the matter described inDisclaimer of opinion paragraph below we were not able to obtain sufficient appropriateaudit evidence to provide a basis for an audit opinion on Internal Financial Controls overFinancial Reporting of the company.
Meaning of Internal Financial Controls over Financial Reporting
A company s internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company s internal financial control over financialreporting includes those policies and procedures that pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company provide reasonable assurance that transactionsare recorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company and provide reasonable assurance regarding prevention or timely detectionof unauthorized acquisition use or disposition of the company s assets that could have amaterial 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 2019 based on theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by The Institute of CharteredAccountants of India (ICAI).
For Shambhu Gupta & Co.
FRN No.:- 007234C
CA. Rajkumar Khatod
M. No. 133612
Date: May 25th 2019