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Camson Bio Technologies Ltd.

BSE: 538858 Sector: Others
NSE: N.A. ISIN Code: INE845E01012
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NSE 05:30 | 01 Jan Camson Bio Technologies Ltd
OPEN 7.31
PREVIOUS CLOSE 7.31
VOLUME 1510
52-Week high 28.45
52-Week low 7.31
P/E
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 7.31
Sell Qty 20895.00
OPEN 7.31
CLOSE 7.31
VOLUME 1510
52-Week high 28.45
52-Week low 7.31
P/E
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 7.31
Sell Qty 20895.00

Camson Bio Technologies Ltd. (CAMSONBIOTECH) - Auditors Report

Company auditors report

TO THE MEMBERS OF CAMSON BIO TECHNOLOGIES LIMITED

Report on the Standalone Financial Statements

We were engaged to audit the accompanying standalone financial statements of CAMSON BIOTECHNOLOGIES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance 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.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on conducting our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder and the Order under section 143 (11)of the Act.

Because of the matter described in the Basis for Disclaimer of Opinion paragraph wewere not able to obtain sufficient appropriate audit evidence to provide a basis for anaudit opinion.

Basis for disclaimer of Opinion

We draw attention to note no. 39 of the Financial Statements which was also reportedin the our audit report for the financial year ended March 31 2016 review reports for thequarter ended December 31 2016 quarter ended September 30 2016 and quarter ended June30 2016. During the previous year the Company had received communication from ashareholder alleging certain issues relating to financial matters of the Company with arequest to conduct a forensic audit. The Company had requested the said shareholder toprovide specific facts and scope/areas for the forensic audit. In the absence of specificdetails requested above the Company's Board of Directors proposed to carry out a forensicaudit by appointing an independent committee/legal counsel to decide the scope and areasof forensic audit.

Till date the Company has not conducted the forensic audit. The Company is of the viewthat material adjustments or disclosures if any arising out of the forensic audit wouldbe considered after conclusion of the forensic audit and the Management has not estimatedthe impact of any adjustment that may arise to the amounts and disclosures in theStatement. As a result of these matters we have not been able to obtain sufficientappropriate audit evidence to state whether any adjustments or disclosure would berequired to the information included in the Financial Statement and the impact thereof.

Our report on the standalone financial statements for the year ended March 31 2016 wasalso disclaimed for the said matter.

Disclaimer of Opinion

Because of the significance of the matters described in the Basis for Disclaimer ofOpinion paragraph above we have not been able to obtain sufficient appropriate auditevidence to provide a basis for an audit opinion. Accordingly we do not express anopinion on the standalone financial statements.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act based on our audit and on theconsideration of the reports of the branch auditors and other auditors on the separatefinancial statements/ financial information of the branches and jointly controlledoperations referred to in the Other Matters paragraph above we report to the extentapplicable that:

a. As described in the Basis for Disclaimer of Opinion paragraph above we sought butwere unable to obtain all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

b. Due to the possible effects of the matter described in the Basis for Disclaimer ofOpinion paragraph above we are unable to state whether proper books of account asrequired by law have been kept by the Company so far as it appears from our examination ofthose books.

c. Due to the possible effects of the matter described in the Basis for Disclaimer ofOpinion paragraph above we are unable to state whether the Balance Sheet the Statementof Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreementwith the relevant books of account.

d. Due to the possible effects of the matter described in the Basis for Disclaimer ofOpinion paragraph above we are unable to state whether the aforesaid standalone financialstatements comply with the Accounting Standards prescribed under section 133 of the Act;

e. The matter described in the Basis for Disclaimer of Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company.

f. On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

g. The reservation relating to the maintenance of accounts and other matters connectedtherewith are as stated in the Basis for Disclaimer of Opinion paragraph above.

h. With respect to the adequacy of the internal financial controls over financialreporting of the Company which is a company incorporated in India and the operatingeffectiveness of such controls refer to our separate Report in "Annexure A".Our report expresses disclaimer of opinion on the Company's internal financial controlsover financial reporting

i. 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. Due to the possible effects of the matter described in the Basis for Disclaimer ofOpinion paragraph above we are unable to state whether the Company has disclosed theimpact of pending litigations on its financial position in its standalone financialstatements;

ii. Due to the possible effects of the matter described in the Basis for Disclaimer ofOpinion paragraph we are unable to state whether the Company has made provision asrequired under the applicable law or accounting standards for material foreseeablelosses if any on long-term contracts including derivative contracts;

iii. Following are the instances of delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

An unpaid divided aggregating to Rs 326230/- for financial year 2008-09 has beenremitted by the Company to above fund with a delay of three days.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes as defined in the Notification S.O.3407(E) dated the November 8 2016 of the Ministry of Finance during the period fromNovember 8 2016 to December 30 2016. However we are unable to obtain sufficient andappropriate audit evidence to report on whether the disclosures are in accordance withbooks of account maintained by the Company and as produced to us by the Management.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a Statement on the matters specified in paragraphs 3 and 4 of theOrder read with paragraph "Basis of Disclaimer opinion".

For Deloitte Haskins & Sells LLP
Chartered Accountants
Firm Registration No 117366W/W-100018
S. Ganesh
Place : Bengaluru Partner
Date : May 292017 Membership No. 204108

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(h) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (I) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We were engaged to audit the internal financials controls over financials reporting ofCAMSON BIO TECHNOLOGIES LIMITED ("the Company") as of March 31 2017 inconjunction with our 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 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 Companies Act 2013.

Auditor's Responsibility

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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls.

Because of the matter described in the Basis of Disclaimer of opinion paragraph belowwe were not able to obtain sufficient appropriate audit evidence to provide a basis for anaudit opinion on internal financial controls system over the financial reporting of theCompany.

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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 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.

Basis of Disclaimer of opinion:

We draw attention to note no. 39 of the Financial Statements which was also reportedin the our audit report for the financial year ended March 31 2016 review reports for thequarter ended December 31 2016 quarter ended September 30 2016 and quarter ended June30 2016. During the previous year the Company had received communication from ashareholder alleging certain issues relating to financial matters of the Company with arequest to conduct a forensic audit. The Company had requested the said shareholder toprovide specific facts and scope/areas for the forensic audit. In the absence of specificdetails requested above the Company's Board of Directors proposed to carry out a forensicaudit by appointing an independent committee/legal counsel to decide the scope and areasof forensic audit.

Till date the Company has not conducted the forensic audit. The Company is of the viewthat material adjustments or disclosures if any arising out of the forensic audit wouldbe considered after conclusion of the forensic audit and the Management has not estimatedthe impact of any adjustment that may arise to the amounts and disclosures in theStatement. As a result of these matters we have not been able to obtain sufficientappropriate audit evidence to state whether any adjustments or disclosure would berequired to the information included in the Financial Statement and the impact thereof.

Our report on the standalone financial statements for the year ended March 31 2016 wasalso disclaimed for the said matter.

Disclaimer of Opinion:

Because of the significance of the matters described in the Basis of Disclaimer ofOpinion paragraph we do not have a basis to form an opinion on the internal financialcontrols over financial reporting. Accordingly we do not express an opinion on the same.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the standalone financial statements of theCompany for the year ended March 31 2017 and the said disclaimer has affected our opinionon the said standalone financial statements of the Company and we have issued a Disclaimerof opinion on the standalone financials statements of the Company.

For Deloitte Haskins & Sells LLP
Chartered Accountants
Firm Registration No 117366W/W-100018
S. Ganesh
Place : Bengaluru
Partner
Date : May 292017
Membership No. 204108

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(I) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification. Also refer paragraph on ‘Basis of Opinion' and ‘Disclaimer ofOpinion' of our report of even date.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the leave and license agreement registered saledeed provided to us we report that the title deeds comprising all the immovableproperties of land and buildings are held in the name of the Company as at the balancesheet date.

Immovable properties of land and buildings whose title deeds have been mortgaged andpledged as security for term loans and cash credit facility guarantees etc. are held inthe name of the Company based on the confirmations directly received by us from lenders.In respect of immovable properties of land and buildings that have been taken on lease anddisclosed as fixed asset in the financial statements the lease agreements are in the nameof the Company where the Company is the lessee in the agreement.

(ii) As explained to us the inventories were physically verified during the year bythe Management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) According to the information and explanations given to us the Company hasgranted unsecured loans to companies or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 in respect of which:

(a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.

(b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments or receipts of principal amounts and interest have been regular as perstipulations.

Also refer paragraph on ‘Basis of Opinion' and ‘Disclaimer of Opinion' of ourreport of even date.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable. Also refer paragraph on ‘Basis of Opinion' and‘Disclaimer of Opinion' of our report of even date.

(v) According to the information and explanations given to us the Company has notaccepted any deposits during the year. The Company does not have any unclaimed depositsand hence compliance with the provisions of Section 73 to 76 or any other relevantprovisions of the Companies Act 2013 is not applicable.

(vi) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013. We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government under subsection (1) of Section 148 of theCompanies Act 2013 and are of the opinion that prima facie the prescribed cost recordshave been made and maintained We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete. Also referparagraph on ‘Basis of Opinion' and ‘Disclaimer of Opinion' of our report ofeven date

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales Tax ServiceTaxValue Added Tax Customs Duty Excise Duty cess and other material statutory duesapplicable to it to the appropriate authorities.

(b) There are undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Sales Tax Service Tax Customs Duty Excise DutyValue AddedTax cess and other material statutory dues in arrears as at March 31 2016 for a periodof more than six months from the date they became payable.

Name of Statute Nature of Dues Amount Period to which the Amount Relates Due Date Date of subsequent payment
(Rs.)
Employee Provident Act 1952 PF 315337 June 15-Jul-16
PF 357966 July 15-Aug-16
PF 344343 August 15-Sep-16
Income Tax Act 1951 Sec 194C 14234 August 7-Sep-16
Sec 194I 18800 August 7-Sep-16 Not Applicable
Sec 194J 22210 August 7-Sep-16
Sec 192B 323499 June 7-Jul-16
Sec 192B 446377 July 7-Aug-16
Sec 192B 463410 August 7-Sep-16

(c) There are no dues of Income-tax Sales Tax Service Tax Customs Duty Excise Dutyand Value Added Tax as on March 31 2016 on account of disputes.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks andfinancial institutions except as under:

(a) In case of defaults in the repayment of loans or borrowings to banks:

Particulars Amount of default of repayment (Rs.) Period of default
Principal Interest
Dues to Banks:
HDFC Bank- Cash Credit-1 10769172 1018584 From June 2016 onwards
HDFC Bank- Cash Credit-II 932334 88183 From June 2016 onwards
HDFC Bank – Farmer Term loan 31300000 1564922 From February 24 2017 onwards
18641931 936808 From April 012016 onwards
HDFC Bank – WCDL- 1 850352 80428 From June 2016 onwards
IndusInd Bank – Credit line 5704367 4437093 From January 03 2016
Dues to Financial Institutions:
Staragri Finance – Inocation of guarantee 26843217 - From April 052016 onwards

The Company has not issued any debentures.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised any money through initial public offer or further public offer andthe term loans have been applied by the Company during the year for the purposes for whichthey were raised or as per purposes revised with appropriate approvals other thantemporary deployment pending application of proceeds. Also refer paragraph on ‘basisof opinion' and ‘ Disclaimer of Opinion' of our report of even date.

(x) To the best of our knowledge and according to the information and explanationsgiven to us there is no fraud by the Company and no material fraud on the Company by itsofficers or employees has been noticed or reported during the year.

We draw attention to note no. 39 of the financial statements which was also reportedin the our audit report for the financial year ended March 31 2016 review reports for thequarter ended December 31 2016 quarter ended September 30 2016 and quarter ended June30 2016. During the previous year the Company had received communication from ashareholder alleging certain issues relating to financial matters of the Company with arequest to conduct a forensic audit. The Company had requested the said shareholder toprovide specific facts and scope/areas for the forensic audit. In the absence of specificdetails requested above the Company's Board of Directors proposed to carry out a forensicaudit by appointing an Independent committee/legal counsel to decide on the scope andareas of forensic audit.

Till date the Company has not conducted the forensic audit. The Company is of the viewthat material adjustments or disclosures if any arising out of the forensic audit wouldbe considered after conclusion of the forensic audit and the Management has not estimatedthe impact of any adjustment that may arise to the amounts and disclosures in thefinancial statement. As a result of these matters we have not been able to obtainsufficient appropriate audit evidence to state whether any adjustments or disclosure wouldbe required to the information included in the financial statement and the impact thereof.

Pending the outcome of the forensic audit we are unable to comment whether any fraudby the Company or on the Company by its officers or employees may have occurred.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013. Also refer paragraph on ‘Basis of Opinion' and ‘Disclaimer ofOpinion' of our report of even date.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards. Also refer paragraph on ‘Basis of Opinion' and‘Disclaimer of Opinion' of our report of even date. Also refer paragraph on‘Basis of Opinion' and ‘Disclaimer of Opinion' of our report of even date.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its subsidiary or associate company or persons connected withthem and hence provisions of section 192 of the Companies Act 2013 are not applicable.

Also refer paragraph on ‘Basis of Opinion' and ‘Disclaimer of Opinion' of ourreport of even date.

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

For Deloitte Haskins & Sells LLP
Chartered Accountants
Firm Registration No 117366W/W-100018
S. Ganesh
Place : Bengaluru Partner
Date : May 292017 Membership No. 204108