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Foods & Inns Ltd.

BSE: 507552 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE976E01023
BSE 11:18 | 27 Sep 64.50 -0.05
(-0.08%)
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NSE 05:30 | 01 Jan Foods & Inns Ltd
OPEN 64.00
PREVIOUS CLOSE 64.55
VOLUME 4676
52-Week high 82.00
52-Week low 44.50
P/E 37.72
Mkt Cap.(Rs cr) 324
Buy Price 64.55
Buy Qty 100.00
Sell Price 64.80
Sell Qty 124.00
OPEN 64.00
CLOSE 64.55
VOLUME 4676
52-Week high 82.00
52-Week low 44.50
P/E 37.72
Mkt Cap.(Rs cr) 324
Buy Price 64.55
Buy Qty 100.00
Sell Price 64.80
Sell Qty 124.00

Foods & Inns Ltd. (FOODSINNS) - Auditors Report

Company auditors report

To the Members of Foods and Inns Limited

Report on Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements ofFoods and InnsLimited ("the Company") which comprise the Balance Sheet as at March 312020 the Statement of Profit and Loss (including Other Comprehensive Income) Statementof Changes in Equity and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2020 its profit (including othercomprehensive income) its changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of standalone financial statements in accordance with theStandards on Auditing (SAs) 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 Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethicsissued by ICAI. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that significancein our audit of thestandalone financial our professional judgment were of most statements of the currentperiod. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report

Information Other than the Standalone Financial Statements and Auditor's Report thereon

The Company's management and Board of Directors is responsible for the otherinformation. The other information comprises the information included in Annual report butdoes not include the standalone financial statements and our auditor's report thereon. TheAnnual Report expected to be made available to us after the date of this report. does notcover the other Ouropinion information thestandalonefinancial and we do not expressany form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to Those Charged With Governance andtake appropriate actions in accordance with Standards on Auditing If based on the work wehave performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 financial statementsthat give a true and fair view of the financial position financial performance (includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

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

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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 financial statements As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation Materiality is the magnitude of the misstatement in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone financial statements may beinfluenced.We consider quantitative materiality and qualitative factors in; (i) planningthe scope of our audit work and evaluating the results of our work; and (ii) to evaluatethe effects of any identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regading independence and to communicate with them all relationshipsand other matters that may reasonably be thought to bear on our independence and whereapplicable 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 financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits 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 Section 143 (11) of the Act we givein the "Annexure A" a statement on the matters specified in the paragraphs 3and 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 faras it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account;

d) In our opinion theaforesaidstandalonefinancialstatementscomplywiththeIndASspecifiedunder Section 133 of theAct read with relevant rules issued thereunder and relevant provisions of the Act; e) Onthe basis of the written representations received from the directors as on March 31 2020taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2020 from being appointed as a director in terms of Section 164(2) of theAct;

Annual Report 2019-20

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 the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act;

h) 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. The Company has disclosed the impact of pending litigations as at March 31 2020 onits financial position in its standalone financial statements - Refer Note 40 to thestandalone financial statements;

ii. 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; and iii. There has been no delay in transferring amounts which wererequired to be transferred to the Investor Education and Protection Fund.

For G.M. Kapadia & Co.
Chartered Accountants
Firm Registration No. 104767W
Atul Shah
Partner
Place: Mumbai Membership No. 039569
Dated this 11th day of June 2020 UDIN: 20039569AAAAEF5481

Annexure A to the Independent Auditor's Report

Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" of our report on even date to the members of the Company on standalonefinancial statements for the year ended March 31 2020:

(i) (a) The Company has maintained proper records of Property Plant and Equipmentshowing particulars of assets including quantitative details and situation of itsproperty plant and equipment; (b) The Company has a regular programme of physicalverification of property plant and equipment by which all property plant and equipmentof the Company are being verified in a phased manner over a period of three years whichin our opinion is reasonable having regard to the size of the Company and nature of itsbusiness. Pursuant to the program a portion of property plant and equipment has beenphysically verified by the management during the year and no material discrepancies werenoticed on verification conducted during the year as compared with the book records; and(c) Based on audit procedures performed for the purpose of reporting the true and fairview of the financial statements and to information and explanations given by themanagement and further based on certificate received the title deeds of immovableproperties included in property plant and equipment are held in the name of the Company.

(ii) (a) Inventories other than stock-in-transit and stock lying in overseas godownhave been physically verified during the year by the management during the year or at theyear end. For stock in transit at the year end the necessary documentary evidence havebeen obtained. In case of stock lying in the overseas godown at the year end thecertificate confirming such stock has been received. In our opinion the frequency ofverification is reasonable;and

(b) The discrepancies noticed on physical verification as compared to the book recordswere not material having regards to size and nature of operations and have been properlydealt with in the books of account;

(iii) 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 paragraph 3(iii)(a) (b) and (c) of the Order are notapplicable;

(iv) There are no overdue amounts in respect of such loan. In our opininon andaccording to the information and explanation given to us the Company has complied withthe provisions of section 185 and 186 of the Act in respect of invesmtents made andloans guarantees and securities granted;

(v) The Company has complied with the directives issued by Reserve Bank of India andthe provisions of sections 73 to 76 or any other relevant provisions of the Act and therules framed there under to the extent applicable. We have been informed by themanagement that no order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any other tribunal in this regard;

(vi) According to the information and explanations given to us pursuant to theCompanies (Cost Records and Audit) Rules 2014 read with section 148(1) of the Act theCentral government has not prescribed maintenance of cost records in respect of any of theCompany's product. Accordingly paragraph 3 (vi) of the order is not applicable to theCompany;

(vii) (a) The Company has generally been regular in depositing with appropriateauthorities undisputed statutory dues such as provident fund employees' state insuranceincome tax sales tax service tax duty of customs duty of excise value added taxgoods and service tax cess and other applicable statutory dues. According to informationand explanations given to us no undisputed statutory dues payable were in arrears as atMarch 31 2020 for a period of more than six months from the date they became payable.

(b) The details of dues of income tax sales tax service tax duty of customs duty ofexcise or value added tax or cess which have not been deposited with the concernedauthorities on account of dispute are given below:

Sr No Name of the Statute Nature of the Dues Amount involved (Rs in lakhs) Period to which the amount relates Forum where dispute is pending
1 The Income Tax Act 1961 Income tax 170.03 AY 2017-18 Commissioner of Income tax (Appeal)
2 The Finance Act 1994 Service tax 2.43 2004-05 to 2007-08 Commissioner of Central Excise (Appeals)

(viii) The Company has not defaulted inrepaymentofduestothefinancialinstitutionsbanks and government. The Company has not issued any debentures;

(ix) In our opinion and according to the information and explanations given to us andbased on overall examination of records the term loans have been applied for the purposefor which the loans were obtained. The Company did not raise any money by way of initialpublic offer or further public offer (including debt instruments);

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year;

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act;

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

(xiii) According to the information and explanations given to us and based on ourexamination of records of the Company the Company is in compliance with the provisions ofsection 177 and 188 of the Act where applicable for transactions with the relatedparties and the details of the related party transactions have been disclosed in thestandalone financial statements as required by the applicable accounting standards.

(xiv) Based on our audit procedures performed for the purpose ofreportingthetrueandfairviewofthestandalonefinancialstatements and according to theinformation and explanations given by the management the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3(xiv) of the Order is not applicableto the Company.

(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the standalone financial statements the Company has not entered into anynon-cash transactions with directors or persons connected with them covered under section192 of the Act. We have been informed that no such transactions have been entered intowith person connected with directors. Accordingly paragraph 3(xv) of the Order is notapplicable to the Company; and (xvi) The Company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934.

For G.M. Kapadia & Co.
Chartered Accountants
Firm Registration No. 104767W
Atul Shah
Partner
Place: Mumbai Membership No. 039569
Dated this 11th day of June 2020 UDIN: 20039569AAAAEF5481

Annexure B to the Independent Auditor's Report

Referred to in paragraph 2(f) under "Report on Other Legal and RegulatoryRequirements" of our report on even date to the members of the Company on standalonefinancial statements for the year ended March 31 2020

Opinion

We have audited the internalfinancialcontrols with reference to financial statements ofthe Company as of March 31 2020 in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date.

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2020 based on the internal controls with reference to financial statementscriteria established by the Company considering the essential components of internalcontrols stated in the Guidance Note.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (‘Guidance Note') issued by the ICAI. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the detectionof frauds and errors the accuracy and completeness of the accounting records and thetimely preparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with We conducted our audit in accordance with the Guidance Note and theStandards on Auditing specified under section 143(10) of the Act to the extent applicableto an audit of internal financial controls both issued by ICAI. Those Standards and theGuidance Note with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system withreference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrols with reference to financial statements includes those policies and proceduresthat (1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the Company's assets that could have a material effect on thestandalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that thecontrols with reference to financial statements may become inadequate because of changesin conditions or that the degree of compliance the policies or procedures maydeteriorate.

For G.M. Kapadia & Co.
Chartered Accountants
Firm Registration No. 104767W
Atul Shah
Partner
Place: Mumbai Membership No. 039569
Dated this 11th day of June 2020 UDIN: 20039569AAAAEF5481

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