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Asian Food Products Ltd.

BSE: 507530 Sector: Others
NSE: N.A. ISIN Code: INE04VT01017
BSE 05:30 | 01 Jan Asian Food Products Ltd
NSE 05:30 | 01 Jan Asian Food Products Ltd

Asian Food Products Ltd. (ASIANFOODPROD) - Auditors Report

Company auditors report

To The Members of Asian Food Products Limited Report on the Audit of the Standalone IndAS Financial Statements

Opinion

We have audited the standalone Ind AS financial statements of Asian Food ProductsLimited ('the Company') which comprise the Balance sheet as at 31 March 2021 theStatement of Profit and Loss including the Statement of Other Comprehensive Income theCash flow statement for the year then ended and a Statement of changes in equity for theyear ended and notes to standalone Ind AS financial statements including a summary ofsignificant accounting policies and other explanatory information. In our opinion and tothe best of our information and according to the explanations given to us the aforesaidstandalone Ind AS financial statements give the information required by the Companies Act2013 as amended ("the Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and loss including othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the "Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements" sectionof our report. We are independent of the Company in accordance with the ‘Code ofEthics' issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence obtained by us is sufficient and appropriate to provide a basisfor our opinion on the standalone Ind AS financial statements.

Emphasis of Matter paragraph

We draw attention to note 15 of the Statement which describes the Managementassessment of uncertainties related to COVID-19 and its consequential financial impact onits assets as at March 31 2021 and operations of the Company. The assessment of themanagement is dependent on the circumstances as they evolve considering the uncertaintiesprevailing in the economic situation. Our opinion is not modified in respect of the abovematter.

The Company does not have any credit facility provided by the bank. Company has issuedcheques in excess of bank balance as on 31st March 2021. Internal audit report is notproduced before us for our verification.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended March 31 2021. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key audit matters How our audit addressed the key audit matter
Transactions with Related Parties
The company along with majority of its related parties operate in the similar line of business. The transactions with related parties are significant that have effect over balance sheet and specifically over both capital advances given and taken. Advances given against land represent 65.30% of the total assets of the company of which 91.31% are advances given to related parties. Also advances received against land represents 4.46% of the company's total liabilities all of which are with related parties of the company. This company along with its related parties operate in the same sector and have significant transactions amongst themselves during the year. Such transactions with related parties are necessitated to be at arm's length they involve significant cash flow between parties intercompany contracts and common management amongst other things they are considered to be a key audit matter. Audit procedure included identification of related party relationships classification examination of transactions from the perspective of arm's length criteria adopted by the Board of Directors risks attached to items such as guarantees and recovery of capital advance ageing and provisioning policies and practices review of confirmation and reconciliation process review of controls and analytical review of various account balances and transaction balances amongst other things.

Other Information

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 standalone Ind AS financial statements and our auditor's report thereon. Our opinionon the standalone Ind AS financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon. In connection with our audit ofthe standalone Ind AS financial statements our responsibility is to read the otherinformation and in doing so consider whether such other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.

Management's Responsibilities for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. 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 the 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 standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the standalone Ind AS financial statements board ofdirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the board of directors either intend to liquidate theCompany or to cease operations or has no realistic alternative but to do so. Those Boardof Directors are also responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone Ind ASfinancial 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls. Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management. Conclude on the appropriateness of the management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern. Evaluate the overall presentation structure andcontent of the standalone Ind AS financial statements including the disclosures andwhether the standalone Ind AS financial statements represents the underlying transactionsand events in a manner that achieves fair presentation. We communicate with those chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat we identify during our audit.

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

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements for the financial year ended March 31 2021 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

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 ofthe Act we give in the "Annexure A" a statement on the matters specified inthe paragraph 3 and 4 of the order.

2. 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 ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; (c) The balance sheet the statement ofprofit and loss and the cash flow statement and the Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account; (d) In our opinion theaforesaid Ind AS financial statements comply with the applicable Indian AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended; (e) On the basis of the written representationsreceived from the directors as on 31 March 2021 taken on record by the Board of Directorsnone of the directors is disqualified as on 31 March 2021 from being appointed as adirector in terms of Section 164 (2) of the Act; (f)With respect to the adequacy of theinternal financial controls over financial reporting of the Company with reference tothese standalone Ind AS financial statements and the operating effectiveness of suchcontrols refer to our separate report in "Annexure B"; and (g) With respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company has disclosedthe impact of pending litigations on its financial position in its 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 to betransferred to the Investor Education and Protection Fund by the Company.

3. With respect to the matter to be included in the Auditors' Report under section197(16):

In our opinion and according to the information and explanations given to us thecompany has not paid any amount of remuneration to its Directors during the current yearand thus it is within the limits as prescribed by Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

For and on behalf of
M/s. S. R. Rahalkar & Associates
Chartered Accountants
Firm Registration No-108283W
CA A. P. Sawarkar
Partner
Membership No. 100442
UDIN: 21100442AAAAGZ6103
Place: Nashik
Date: 29/06/2021

Annexure A to the Independent Auditors' Report

The Annexure referred to paragraph 1 under the heading "Report on other legal andregulatory requirements" of the Independent Auditors Report of even date to themembers of Asian Food Products Limited on the standalone Ind AS financialstatements for the year Ended on 31/03/2021. We report that:

(i) (a) The company has maintained records of Fixed Assets so as to show fullparticulars however the quantitative details and situations of the Fixed assets has notbeen mentioned in the Fixed Assets register.

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given by the management thetitle deeds of immovable properties included in property plant and equipment are held inthe name of the company.

(ii) The Company does not have inventories during the year ended March 31 2021 hencereporting under this clause is not applicable to the Company.

(iii) The Company has not granted loans and advances to parties covered in the registermaintained under Section 189 of the Act. Hence reporting under this clause is notapplicable to the company.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantees or security to the parties ofmade investments covered under Section 185 and 186 of the Act.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable to the Company.

(vi) Pursuant to the rules made by the Central Government of India the company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. However the Company has no Inventories during the year 2020-2021. Hencereporting under this clause is not applicable to the Company.

(vii) (a) According to the information and explanation given to us and on the basis ofthe our examination the company is generally regular in depositing undisputed statutorydues including provident fund employees ‘state insurance income-tax sales-taxservice tax duty of customs duty of excise value added tax Cess and any otherstatutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax cess and other statutory dueswere outstanding at the year end for a period of more than six months from the date theybecame payable.

(c) According to the records of the Company the dues of income-tax sales tax servicetax duty of custom duty of excise value added tax goods and service tax cess andother statutory dues on account of dispute are as follows:

Name of Statute Nature of the Dues Outstanding Amount (Rs.) Amount Deposited (Rs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Tax Interest and penalty 11142010* 3884105 2012-2013 and 2014- 2015 ITAT-PUNE*

*ITAT order dated 21.06.2021 is received wherein the appeals of the Revenue aredismissed.

(viii) In our opinion and according to the records examined by us and the informationand explanation given to us the company has no outstanding loans or borrowings to banksor to financial institutions further no loans or borrowings were taken from governmentand there were no debentures issued during the year or outstanding as at 31st March 2021.Hence this clause is not applicable.

(ix) In our opinion and according to the information and explanations given to usthere are no term loans raised from the banks or financial institutions by the Companyduring the year. The company has not raised money by way of initial public offer orfurther public offer including debt instruments during the financial year.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Financials Statements and according to the information and explanationprovided by the management we report that no fraud by the Company or no material fraud onthe Company by the officers and employees of the Company has been noticed or reportedduring the year.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid or provided formanagerial remuneration. Hence this clause is not applicable to the Company.

(xii) In our opinion and according to the information and explanation given to us thecompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanation given to us and on the basis ofexplanation given to us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the order is not applicable to the Company and notcommented upon.

(xv) According to the information and explanations provided by the management theCompany has not entered into any non-cash transactions with directors or persons connectedwith him as referred to in section 192 of Companies Act 2013.

(xvi) The company of the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the order is notapplicable to the company.

Date: 29/06/2021 For S. R. Rahalkar & Associates
Place: Nashik Chartered Accountants
FRN: 108283W
A.P. Sawarkar
Partner
Membership No. 100442
UDIN: 21100442AAAAGZ6103

Annexure B to the Independent Auditors' Report

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF ASIAN FOOD PRODUCTS LIMTED

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 AsianFood Products Limited as of 31 March 2021 in conjunction with our audit of thestandalone Ind AS financial statements 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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to the standalone Ind AS financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls over Financial Reporting (the "GuidanceNote") and the Standards on Auditing issued by ICAI and deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting with reference to the standalone Ind AS financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting with referenceto the standalone Ind AS financial statements and their operating effectiveness. Our auditof internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting with reference tothe standalone Ind AS financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standaloneInd AS financial statements whether due to fraud or error. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the company's internal financial controls system over financial reporting withreference to the standalone Ind AS financial statements.

Meaning of Internal Financial Controls over Financial Reporting with reference to thestandalone Ind AS financial statements

A company's internal financial control over financial reporting with reference to thestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation ofstandalone Ind AS financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting with reference to the standalone Ind AS financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of standalone Ind AS financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to the standalone Ind AS financial statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to the standalone Ind AS financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto the standalone Ind AS financial statements to future periods are subject to the riskthat the internal financial control over financial reporting with reference to thestandalone Ind AS financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements and such internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements were operating effectively as at March 312021 based on the internal control over financial reporting criteria established by thecompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

Date: 29/06/2021 For S. R. Rahalkar & Associates
Place: Nashik Chartered Accountants
FRN: 108283W
A.P. Sawarkar
Partner
Membership No. 100442
UDIN: 21100442AAAAGZ6103

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