TO THE MEMBERS OF ELEGANT FLORICULTURE & AGROTECH (I) LTD.
We have audited the accompanying financial statements of ELEGANT FLORICULTURE& AGROTECH (I) LTD. which comprise the Balance Sheet as at 31st March 2019and the Statement of Profit and Loss and Cash Flow Statement for the year then ended anda summary of significant 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
i) 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.
ii) 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 ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.
iii) An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
iv) We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India : i) in the case of the Balance Sheet of the stateof affairs of the company as at 31st March 2019; ii) in the case of the Statement ofProfit & Loss account of the Loss for the year ended on that date. iii) in thecase of the Cash Flow Statement of the cash flows for the year ended on that date.
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"; statement on the matters specifiedin the paragraph 3 and 4 of the Order to the extent applicable.
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 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 Sheetand the Statement of Profit and Loss dealt with by this Report are in agreement with thebooks 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 on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164(2) of the Act; and
(f) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
(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;as such the question of commenting on any material foreseeable losses thereon does notarise
(iii) There has not been an occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund. The question ofdelay in transferring such sums does not arise
For Shiv Pawan & Company Chartered Accountants
(Shivhari B. Garg)
Firm Regn. No. : 120121W
Membership No. : 085517
Place : Navi Mumbai
Date : 17th May 2019
ANNEXURE 'A' TO THE AUDITOR'S REPORT OF EVEN DATE
(Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of Report) i) In respect of fixed assets:
a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the management at reasonableintervals during the year having regard to the size of the company and the nature of itsassets. We are informed that no material discrepancies were noticed by the management onsuch verification.
c) The title deeds of immovable properties are held in the name of the company.
ii) In respect of Inventories:
a) The physical verification of inventory has been conducted at regular intervals bythe management.
b) The procedure of physical verification of inventory followed by the management isreasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c) The company has been maintaining proper records of the inventory and no materialdiscrepancies were noticed on physical verification as compared with the book records.
iii) In respect of any loans secured or unsecured granted by the Company to othercompanies firms Limited Liability Partnership or other parties covered in the registermaintained under section 189 of the Companies Act 2013 :
a) The terms and conditions of grant of loans that are not prejudicial to the company'sinterest.
b) The receipt of the principal amount and interest are also regular as the Loans arerepayable on demand basis.
c) As mentioned above in clause (b) the loans are repaid on demand basis hence thereis no overdue amount for more than ninety days.
iv) In respect of loans investments guarantees and security as per provisions ofsection 185 and 186 of the Companies Act 2013
a) In our opinion and according to the information and explanations given to us thecompany has not complied with the provisions of Section 185 of the Companies Act 2013 asdescribed Point No.18 of Note No.18.
b) In our opinion and according to the information and explanations given to us thecompany has not complied the provisions of sub-section 7 of section 186 of the CompaniesAct 2013 we give in the Point No.15 of Note No.18; the details of loan which is given ata rate of interest lower than the prevailing yield of one year which is closest to thetenor of the loan.
v) In respect of Acceptance of Public Deposits:
a) The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013
vi) In respect of cost records:
a) The maintenance of cost records u/s 148(1) of the Companies Act 2013 is notapplicable to the company.
vii) In respect of Payment/ Non-payment of Statutory Dues:
a) The Company is regular in depositing undisputed statutory dues including ProvidentFund Employees' State Insurance Income-tax Sales-tax Wealth Tax Service Tax Duty ofCustoms Duty of Excise Value Added Tax Cess and any other Statutory Dues with theAppropriate Authorities.
viii) In respect of Default of Dues of Banks / Financial Institutions / DebentureHolders:
a) 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.
ix) In respect of end use of money raised by Initial Public Offer or further PublicOffer and Term Loans:
a) According to the information and explanations given by the management the companyhas not raised moneys by way of initial public offer or further public offer includingdebt instruments and term Loans.
Hence the provisions of clause 3(ix) of the Order are not applicable to the Company.
x) In respect of Frauds noticed / reported:
a) To the best of our knowledge and belief and according to the information andexplanation given to us and the records examined by us no frauds on or by the Companyhave been noticed or reported during the year.
xi) In respect of payment of managerial remuneration:
a) Based upon the audit procedures performed and the information and explanations givenby the management the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act;
xii) In respect of maintenance of Net Owned Fund and Deposits by Nidhi Company:
a) Since the Company is not a Nidhi Company the provisions of clause 3(xii) of theOrder are not applicable to the Company.
xiii) In respect of transactions with the related parties:
a) In our opinion and according to the information and explanations given to ussection 177 of Companies Act 2013 has been complied with.
b) In our opinion and according to the information and explanations given to us theCompany has not entered into related parties transactions as per the provisions of Section188 of Companies Act 2013.
xiv) In respect of Preferential Allotment or Private Placement of Shares orDebentures:
a) According to the information and explanations given by the management the companyhas not made preferential allotment or Private Placement of Shares or Debentures duringthe year under review hence the provisions of Clause 3(xiv) are not applicable to theCompany.
xv) In respect of non-cash transactions with directors or persons connected withhim:
a) Based upon the audit procedures performed and the information and explanations givenby 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 theCompany and hence not commented upon.
xvi) In respect registration u/s 45-IA of Reserve Bank of India Act 1934:
a) The Company is not required to be registered u/s 45-IA of Reserve Bank of India Act1934.
|For Shiv Pawan & Company |
|Chartered Accountants |
|(Shivhari B. Garg) |
|Firm Regn. No. : 120121W |
|Membership No. : 085517 |
|Place : Navi Mumbai |
|Date : 17th May 2019 |