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Chothani Foods Ltd.

BSE: 540681 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE344X01016
BSE 00:00 | 29 May 2.80 0
(0.00%)
OPEN

2.75

HIGH

2.80

LOW

2.75

NSE 05:30 | 01 Jan Chothani Foods Ltd
OPEN 2.75
PREVIOUS CLOSE 2.80
VOLUME 30000
52-Week high 9.35
52-Week low 2.75
P/E 11.20
Mkt Cap.(Rs cr) 1
Buy Price 2.86
Buy Qty 10000.00
Sell Price 5.00
Sell Qty 10000.00
OPEN 2.75
CLOSE 2.80
VOLUME 30000
52-Week high 9.35
52-Week low 2.75
P/E 11.20
Mkt Cap.(Rs cr) 1
Buy Price 2.86
Buy Qty 10000.00
Sell Price 5.00
Sell Qty 10000.00

Chothani Foods Ltd. (CHOTHANIFOODS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF CHOTHANI FOODS LIMITED

(Formerly known as "ASHOK MASALA MART LIMITED")

Report on the Financial Statements

We have audited the accompanying financial statement of CHOTHANI FOODS LIMITED(the "Company") which comprise the Balance Sheet as at 31/03/2019 theStatement of Profit and Loss Cash Flow Statement for year ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the 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 financial statement that give a true and fair view of the financial positionfinancial performance and Cash Flow of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. 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: anti design.implementation 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 arc free from material misstatement. whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

Our audit involves performing procedures to obtain audit evidence amout the adequacy ofthe internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend upon on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to 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 Company's internal financial controls systemover financial reporting.

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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issues by the Institute of CharteredAccountants of India. We give in the Annexure B statements on the matters relating tointernal financial controls.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order2016("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Companies Act 2013. We give in the Annexure A statements on the matters specified inparagraphs 3 and 4 of the order to the extent applicable.

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 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 financial statements comply with the AccountingStandards specified under Section 133 of 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 on31/03/2019 taken on record by the Board of Directors none of the directors isdisqualified as 31/03/2019 from being appointed as a director in terms of Section 164 (2)of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B".

g. 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 in our opinionand to the best of our information and according to the explanations given to us

h. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

i. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

j. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

FOR RAKESH R. AGARWAL & ASSOCIATES
(Chartered Accountants)
Firm Reg. No. 119168W
Date : 30.05.2019
Place : MUMBAI

Annexure A to Independent Auditors Report

To

The Members of CHOTHANI FOODS LIMITED

(i) In Respect of Fixed Assets

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

b) Fixed assets have been physically verified by the management at reasonableintervals; No material discrepancies were noticed on such verification.

c) the title deeds of immovable properties are held in the name of the company.

(ii) In Respect of Inventories

Physical verification of inventory has been conducted at reasonable intervals by themanagement.

(iii) Compliance under section 189 of The Companies Act 2013

The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained u/s 189 of the Companies Act 2013.

Since the Company has not granted any loans to any related parties and hence otherconditions are not applicable.

iv. Compliance under Section 186 and 186 of the Companies Act 2013:

While doing transaction for loans investments guarantees and security provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with.

(v) Compliance under Section 73 to 76 of the Companies Act 2013 and Rules framedthereunder while accepting deposits:

The company has not accepted any Deposits.

(vi) Maintenance of cost records

The Company is not required to maintain cost records pursuant to the Rules made by theCentral Government for the maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013.

(vii) In respect of statutory dues and Compliances:

a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income taxsales-tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues applicable to it.

b) There is no dispute with the revenue authorities regarding any duty or tax payable.

(viii)Repayment of Loans and Borrowings

The company has not defaulted in repayment of dues to financial institution or a bank.

(ix) Utilization of Money Raised by Public Offers and Term Loan For which they Raised

The Company has not applied term loans for the purposes other than for which those areraised

(x) Reporting of Fraud during the year:

Based on our audit procedures and the information and explanation made available to usno such fraud noticed or reported during the year.

(xi) Managerial Remuneration:

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.

(xii) Compliance by Nidhi Company regarding Net Owned Fund to Deposit Ratio:

As per information and records available with us the company is not Nidhi Company.

(xiii)Related Party Compliance with Section 177 and 188 of the Companies Act 2013:

All transactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.

(xiv) Issue of Share Capital and use of Amount:

The company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review.

(xv) Compliance under Section 92 of the Companies Act 2013.

The company has not entered into any non-cash transactions with directors or personsconnected with him.

(xvi)Requirement of registration under 45-IA of Reserve Bank of India Act 1934:

The company is not required to be registered under section 45-IA of the Reserve Bank oflndia Act.

FOR RAKESH R. AGARWAL & ASSOCIATES
(Chartered Accountants)
Firm Reg. No. 119168W
Date : 30.05.2019 Sd/-
Place : MUMBAI RAKESH R. AGARWAL
(Proprietor)
Membership No : 100223

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of CHOTHANI FOODS LIMITED (Formerly known as "AshokMasala Mart Limited")

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 CHOTHANIFOODS LIMITED ("The Company") as of March 31 2019 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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.

Auditors' 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 amount the adequacyof the internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend upon on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to 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 Company's internal financial controls systemover financial reporting.

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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issues by the Institute of CharteredAccountants of India.

FOR RAKESH R. AGARWAL & ASSOCIATES
(Chartered Accountants)
Firm Reg. No. 119168W
Date : 30.05.2019 Sd/-
Place : MUMBAI RAKESH R. AGARWAL
Proprietor
M.No. : 100223