TO THE MEMBERS OF
CHORDIA FOOD PRODUCTS LIMITED Report on the Financial Statements
We have audited the accompanying Standalone financialstatements of Chordia FoodProducts Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearended and a summary of the significant accounting policies and other explanatoryinformation.(hereinafter referred to as Standalone financial statements)
Managements Responsibility for the Standalone Financial Statements
The Companys Management is responsible for the matters stated in section 134(5)of the Companies Act 2013 ("the Act") with respect to preparation of theseStandalone financial statements that give a true andfairviewofthe financialperformance andcash flows of the Company position in accordance with the Accounting principles generallyaccepted in India including the Accounting Standards specified under section 133 of theAct read with rule 7 of the Companies (Accounts) Rules 2014. This responsibility includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent and design implementation andmaintenance of internal controls that were operating effectively for ensuring the accuracyand completeness of the accounting records relevant the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatements whether due to fraud or error.
Our responsibility is to express an opinion on these Standalone financial statementsbased on our audit.
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 there under.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143 (10) of the comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether the financial material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Financial statements. The procedures selected depend onthe auditors judgment including the assessment of the risks of materialmisstatement of the Standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers the internal controls relevant to theCompanys preparation and fair presentation of the Standalone financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances but not for the purpose of expressing an opinion on whether the companyhas in place an adequate internal financial controls system over financial reporting andthe operative effectivenessof such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the companys Directors as well as evaluating the overallpresentation of the Standalone financial statements.
We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone IND AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:
a. in the case of the BalanceSheetof the stateofaffairs of Company as at 31stMarch 2017;
b. in the case of the StatementofProfit the and Loss loss of Company for theyear ended on that date
c. in the case of the Cash FlowStatementof the cashflows of Company for theyear ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") as amended issued by the Central Government in terms of sub section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on themattersspecifiedin of the Order. paragraphs 3 and 4
2. As required by Section 143(3) of the Act we report that:
a) We have o btained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards specified under section 133 the Act read with rule 7 of the Companies( Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2017 from being appointed as a directorin terms of Section 164 (2) of the Act. controls over financial reporting of the Companyf) Withrespecttothe adequacyoftheinternal financial and the operating effectivenessof such controls refer to our separate Report in " Annexure B"
g) With respect to the other matters to be included in the Auditors report inaccordance 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 does not have any pending litigations which would impact its financialposition.
ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to transferred to the InvestorEducation and Protection Fund by the company.
iv. The Company has provided requisite disclosures in the Standalone Financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016. Based on audit procedures managementrepresentation. We report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management.- Refer note 36 to theStandalone Financial Statements.
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
Referred to in Paragraph 1 under the heading Report on Other Legal and RegulatoryRequirement of our report of even date to the Financial statements of the companyfor the year ended March 312017 we report that
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b The major portion of fixed assets have been physically verified by the management ina phased manner designed to cover all the items over a period of three years which inour opinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed assets has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.
(c) The title deeds of the immovable properties are held in the name of the company.
2. (a) The management has conducted the physical verification of inventory atreasonable intervals.
(b) The discrepancies noticed on physical verificationof inventory as compared to booksrecords which has been properly dealt with in the books of account were not material.
3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3(iii) (a) to (c) of theorder are not applicable to the Company and hence not commented upon.
4. In our opinion and according to the information and explanation given to us thecompany has complied with the provisions of
Section 185 and 186 of the companies Act 2013 in respect of loans investmentsguarantees and security.
5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Section 73 to 76 or any otherrelevant provisions of the Act and the Companies( Acceptance of Deposit)
Rules2015 with regard to the deposits accepted from public are not applicable.
6. As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub section (1) of
Section 148 of the Act in respect of the activities carried on by the Company.
7. (a) According to information and explanation given to us and on the basis of ourexamination of the books of account and records the Company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees State
Insurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 31 2017 for a period of more than six monthsfrom the date on when they become payable.
(b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute.
8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.
9. Based upon the audit procedures performed and the information and explanations givenby the management the Company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.
10. Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year. 11. Based upon theaudit procedures performed and the information and explanations given by the managementthe managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct;
12. In our opinion the Company is not a Nidhi company. Therefore the provisions ofClause 3 (xii) of the Order are not applicable to the Company.
13. In our opinion all transactions with the related parties are in compliance withSection 177 and 188 of Companies Act 2013 and the details have been disclosed in theStandalone Financial Statements as required by the applicable accounting standards. 14.Based upon the audit procedures performed and the information and explanations given bythe management the Company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3 (xiv) of the Order are not applicable to theCompany and hence not commented upon.
15. Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3
(xv) of the Order are not applicable to the Company and hence not commented upon.
16. In our opinion the Company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.
| ||M/s. Sunil P. Shah |
| ||Chartered Accountants |
| ||Sunil P Shah |
|Place : Pune ||Proprietor |
|Date : 30th May 2017 ||Membership No. 37483 |
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
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 ChordiaFood Products Limited ("the Company") as of 31 st March 2017in conjunction with our audit of the Standalone Financial statements of the Company forthe year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 (ICAI). Theseresponsibilities include the designimplementationandmaintenanceofadequateinternalfinancialcontrols that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to companys policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompaniesAct 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial We conducted our audit in accordance with the Guidance Note onAudit of Internal Financial Controls over Financial Reporting (the
"Guidance Note") and the Standards on Auditing issued by ICAI and deemed tobe prescribed under section 143(10) of the Companies
Act 2013 to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting 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 and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining reporting anunderstanding ofinternalfinancial assessing the risk thata material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the financial fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial. controlssystem over financial reporting
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial 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 reasonable assurance that transactions are recorded as necessary to permitpreparation of financial accordance with Generally Accepted Accounting Principles andthat receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) Provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the companys assets that could have a material effect on thefinancial 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 financialreporting to futureperiods are subject to the risk that the internal financial controlsover control overfinancialreporting may become inadequate because of changes in conditions or that thedegree 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 stMarch 2017 based on the internal control considering the essential components of internalcontrol stated in the overfinancial Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting issued by the Institute of Chartered Accountants of
| ||M/s. Sunil P. Shah |
| ||Chartered Accountants |
| ||Sunil P Shah |
|Place : Pune ||Proprietor |
|Date : 30th May 2017 ||Membership No. 37483 |