Amrit Corp Ltd.
|BSE: 507525||Sector: Agri and agri inputs|
|NSE: N.A.||ISIN Code: INE866E01026|
|BSE 00:00 | 23 Oct||710.10||
|NSE 05:30 | 01 Jan||Amrit Corp Ltd|
Amrit Corp Ltd. (AMRITCORP) - Auditors Report
Company auditors report
To the Members of AMRIT CORP. LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of AMRIT CORP.LIMITED (the Company) which comprise the Balance Sheet as at 31stMarch 2020 and the Statement of Profit and Loss Statement of Changes in Equity and theCash Flow Statement for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information(hereinafter referred to as the financial statements).
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (the Act) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended Ind AS and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 312020 and its profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion on the financial statements.
Emphasis of Matter
We draw attention to Note 37 of the financial statements regardingmanagement's assessment of COVID-19 impact on the future performance of the Company.Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no key audit matters to be communicatedin our report.
Information other than the Financial Statementsand Auditor's Report thereon
The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Directors' Report Report onCorporate Governance and General Shareholders Information but does not include thefinancial statements and our Auditor's report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management and those charged with Governance forthe Financial Statements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 (the Act) with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements the Board of Directors isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if
individually or in the aggregate they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financialstatements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our Auditor's Report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016(the Order) issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the Annexure A' statementon the matters
specified in paragraphs 3 and 4 of the Order to
the extent applicable.
2. As required by Section 143 (3) of the Companies
Act 2013 we report that:
a. we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
b. in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;
c. the Balance Sheet the Statement of Profit and Loss including otherComprehensive Income the Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
d. in our opinion the aforesaid financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended including the Companies (IndianAccounting Standards) Amendment Rules 2019;
e. on the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directors noneof the directors is disqualified as on 31 March 2020 from being appointed as a director interms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in AnnexureB' ; and
g. with respect to the other matters to be i ncluded in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended: In our opinion and to the best of our information and according to theexplanations given to us the remuneration
paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act.
h. with respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note 36 to the financialstatements;
ii. The Company has made necessary provision in its financialstatements under the applicable law or Indian accounting standards wherever required;
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
For Mukesh Aggarwal & Co.
Chartered Accountants Firm's Registration No. 011393N
Annexure A to Independent Auditors' Report
1. (a) The company has maintained proper records
showing full particulars including quantitative details and situationof fixed assets.
(b) The company has a phased program of physical verification of itsfixed assets which in our opinion is reasonable having regard to the size of the companyand the nature of its assets. In accordance with such program the management hasphysically verified its fixed assets during the year and discrepancies if
any noticed on such verification have been duly accounted for in thebooks of accounts.
(c) The title deeds of immovable properties which are freehold are heldin the name of the company. In respect of building that has been taken on lease anddisclosed as Right-of-Use asset in the financial statements the lease agreements are inthe name of the Company.
2. According to the information and explanations given to us physicalverification of inventories is conducted by the management at periodic intervals. Theprocedures followed by the company for physical verification of inventories are reasonableand adequate in relation to the size of the company and the nature of its business. Thecompany is maintaining proper records of inventory and discrepancies if any noticed onphysical verification have been duly accounted for in the books of accounts.
3. The Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Consequently sub-clauses (a) (b)& (c) of this clause are not applicable.
4. The Company has not made any transaction in respect of loans coveredunder section 185 of the Companies Act 2013. In respect of loans investments guaranteesand security covered under section 186 of the Companies Act 2013 the provisions of thesaid section 186 have been duly complied.
5. The Company has not accepted any deposits from the public andconsequently the directives issued by Reserve Bank of India the provisions of sections73 to 76 of the Companies Act 2013 and rules framed there under are not applicable.Accordingly provisions of this clause are not applicable on the Company.
6. In accordance with the information given by the management themaintenance of cost records has not been prescribed by the Central Government undersection 148 (1) of
the Companies Act 2013.Therefore reporting under this clause is notapplicable to the company.
7. 1. According to the information and explanations
given to us and on the basis of our examination of the books ofaccount the company is regular in depositing the undisputed statutory dues includingprovident fund employees' state insurance income tax GST duty of customs cessand any other statutory dues as applicable to it with the appropriate authorities.
2. According to the information and explanations given to us there wasno undisputed amounts payable in respect of the above dues which were outstanding as at 31stMarch 2020 for a period of more than six months from the date of their becoming payable.
3. According to the information and explanations given to us theamounts payable in respect of income tax which have not been deposited on account of anydisputes are as under:
8. The Company has not defaulted during the year in repayment of anyloans or borrowing to a financial institution bank Government or dues to debentureholders.
9. According to the information and explanations given to us duringthe year the Company has raised term loans. The aforesaid term loans were applied for thepurposes for which they are raised. The company has not raised any monies by way ofinitial public offer/further public offer during the year.
10. According to the information and explanations given to us no fraudby the Company or no fraud on the Company by its officers or employees has been noticed orreported during the year.
11. The company has paid managerial remuneration as per provisions ofsection 197 read with Schedule V to the Companies Act 2013.
12. The Company is not a Nidhi Company and hence reporting under clause3 (xii) is not applicable.
13. The transactions with the related parties made by the Company arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableIndian Accounting Standards.
14. The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year and hencereporting under clause 3 (xiv) is not applicable.
15. During the year the company has not entered into any non- cashtransactions with directors or persons connected with him and hence provision of section192 of Companies Act 2013 are not applicable.
16. The Company is not required to register under section 45- IA of theReserve Bank of India Act 1934.
Annexure B' to IndependentAuditors' Report
Referred to in Paragraph 2 (f) under the heading of report onother legal and regulatory requirements of our report of even date
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financialreporting of AMRIT CORP. LIMITED (the Company) as of March 312020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on internal policies & proceduresaccounting records and essential components on the internal control over financialreporting criteria established by the Company as per Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the ICAI. These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the Guidance Note) and the Standards on Auditing issuedby ICAI and prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.
Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting isa process 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 controlover financial 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal FinancialControls over Financial Reporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over
financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312020 based on the internal financialcontrol over financial reporting criteria established by the company considering theessential components of internal control stated in Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.