To THE MEMBERS
M P AGRO INDUSTRIES LIMITED VADODARA
Report on the Audit of the Financial Statements
We have audited the accompanying financial statements of M P Agro Industries Limited(the Company) which comprise the Balance Sheet as at March 31 2020 theProfit and Loss Statement and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
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 theCompanies Act 2013 (the Act) in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended(Ind AS) and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2020 the loss and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
Due to the COVID-19 related lockdown we were not able to attend the Management's yearend physical verification of inventory. Consequently we have performed alternateprocedures to audit the existence of inventory as per the guidance provided in SA 501"Audit Evidence - Specific Considerations for Selected Items" and have obtainedsufficient appropriate audit evidence to issue our opinion on these Financial Results. Ourreport on the Statement is not modified in respect of the above matters.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Sr. No. Key Audit Matter ||Auditors' Response |
|Revenue Recognition || |
|The Company recognizes revenues when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. In determining the sales price the Company considers the effects of rebates and discounts (variable consideration). The terms of arrangements in case of domestic sales including the timing of transfer of control the nature of discount and rebates arrangements delivery speci cations create complexity and judgment in determining sales revenues. ||Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing of samples by selecting samples of invoices and vouchers for a variety of revenues and capital expenditure for the purpose of revenue reorganization appropriateness of the transaction price and their basis over a period. |
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Financial 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 financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also 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 adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due 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 responsible for overseeing the Company's financial reportingprocess.
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control. Obtain anunderstanding of internal financial controls 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 theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the standalone financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the standalone financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the 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 also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 statement on the matters specified in paragraphs 3 and 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 ofProfit and Loss Statement of Changes in Equity and the Statement of Cash Flow dealt withby this Report are in agreement with the relevant books of account. d. In our opinion theaforesaid financial statements comply with the Ind AS specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. e. On the basis of thewritten representations received from the directors as on March 31 2019 taken on recordby the Board of Directors none of the directors is disqualified as on March 31 2019 frombeing appointed as a director in terms of Section 164 (2) of the Act. f. On the basis ofthe management's in depth involvement in the day to day affairs of the businesstransactions of the Company and looking to the size and volume of operations and based onthe information and explanations provided to us on the functioning of the affairs ofbusiness we are of the opinion that the existing controls hardly suffer from significantmaterial weaknesses and the existence of checks and controls act as deterrent to materialmisstatements frauds and massive errors and adequate internal financial controls systemoperate over financial reporting system which serves the purpose laid down in Sec.143 ofthe Companies Act 2013. g. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 as amended 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 wouldimpact its financial position ii. The Company did not have any long-term contractsincluding derivative contracts; as such the question of commenting on any materialforeseeable losses thereon does not arise iii. There has not been an occasion in case ofthe Company during the year under report to transfer any sums to the Investor Educationand Protection Fund. The question of delay in transferring such sums does not arise.
| ||For PARIKH SHAH CHOTALIA & ASSOCIATES |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Reg. No. 118493W |
| ||CA VIJAY M. PARIKH (Mem. No. 031773) |
|VADODARA 30th July 2020 ||PARTNER |
ANNEXURE A TO INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph 2 under Report on Other Legal and RegulatoryRequirements of the Independent Auditors' Report of even date)
On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we state that:-
i. Fixed Assets a. The Company has maintained proper records showing particularsincluding quantitative details and situation of fixed assets. b. As explained to us fixedassets according to the practice of the Company are physically verified by themanagement at reasonable intervals in a phased verification-programme which in ouropinion is reasonable looking to the size of the Company and the nature of its business.c. According to the information and explanation given to us the title deeds of immovableproperties of the Company are held in the name of the company.
ii. As explained to us there are no Physical Inventory as on 31/03/2020 except forGoods In Transit and during our audit no material discrepancies were noticed.
iii. According to the information and explanations given to us the Company has grantedunsecured loans parties covered u/s 189 of the Companies Act 2013 during the year underreport. a. The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest; b. The schedule of repayment of principal and payment of interest isstipulated and to be repaid on demand by the Company; c. the said amount is not overdue.
iv. ln our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.
iv. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit to which the provisions of Section 73 to 76 of theCompanies Act 2013 and Rules made there under.
vi. In our opinion and according to the information and explanations given to us themaintenance of cost records pursuant to the Rules made by the Central Government underSection 148(1) of the Companies Act 2013 do not apply to the Company.
a) According to the records of the Company it has been regular in depositingundisputed statutory dues including Income tax and other Statutory Dues and there are noarrears outstanding as at year end for a period of more than six months from the date theybecame payable. b) According to the information and explanations given to us dues thathave not been deposited by the company on account of disputes are as follows:
|Name of the Statute ||Nature of Dues ||Amount in Lakhs ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||66.75 ||F.Y. 2013-14 (i.e. A.Y. 2014-15) ||ITAT Indore |
viii. On the basis of records examined by us and the information and explanations givento us the Company has not borrowed any amount for which scheduled repayment is required.The Company has also not issued any debentures.
ix. During the year under reference Company has not borrowed any amount by way of TermLoan. The Company has also not raised any money by way of initial public offer or furtherpublic offer.
x. According to the information and explanations given to us and to the best of ourknowledge and belief no fraud by the Company or by its officers or employees has beennoticed 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 managerial remuneration has been paid orprovided for during the year as per the provisions of section 197 read with Schedule V tothe Companies Act 2013.
xii. The Company is not a Nidhi Company. Therefore the provisions of clause 3 (xii) ofthe Companies (Auditor's Report) Order 2016 are not applicable to the Company.
xiii. ln our opinion all transactions with the related parties are in compliance withSection 177 and 188 of the Companies Act 2013 where applicable and the details have beendisclosed in the Financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review and therefore the provisions ofSection 42 of the Companies Act 2013 are not applicable to the Company.
xv. ln our opinion and according to the information and explanations given to us theCompany has not entered into any non - cash transactions with directors or personsconnected with the Directors.
xvi. The Company is not required to be registered under Section 45-lA of the ReserveBank of India Act 1934.
| ||For PARIKH SHAH CHOTALIA & ASSOCIATES |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Reg. No. 118493W |
| ||CA VIJAY M. PARIKH (Mem. No. 031773) |
|VADODARA 30th July 2020 ||PARTNER |