Independent Auditors Report
The Members of
NAISARGIK AGRITECH (INDIA) LTD.
We have audited the accompanying financial statements of "NAISARGIK AGRITECH(INDIA) LTD." which comprise the Balance Sheet as at March 31 2014 the Statementof Profit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position and financial performance of the Company inaccordance with the accounting principles generally accepted in India including AccountingStandards referred to in sub-section (3C) of section 211 of the Companies Act 1956("the Act"). This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2014;
b) in the case of the Statement of Profit and Loss of the profit/ loss for the yearended on that date; and
c) In the case of the Cash Flow Statement of the cash flow for the year ended on thatdate.
1. As required by the Companies (Auditors Report) Order 2003 ("theOrder") issued by the Central Government of India in terms of sub-section (4A)ofsection 227 of the Act we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act we report that:
a) we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by theCompany so far as 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 Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with the Accounting Standards referred to in subsection (3C) ofsection 211 of the Companies Act 1956; except AS 22 relating to the Taxes on Income readwith notes forming part of accounts.
e) On the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.
f) It may be noted that at present no Rules relating to the amount of cess forrehabitation or revival or protection of assets of sick industrial companies payable by acompany under section 441A of the Act have been notified by the central Government. Thusit would not be possible for the auditor to comment on the regularity or otherwise aboutthe cess till the time relevant rules or regulations are issued.
For Vishves A. Shah & Co.
(Vishves A. Shah)
M. No. 109944
Date : 28th April 2014
Place : Ahmedabad
Annexure referred to in paragraph 1 of our report even date.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
(i) In Respect of the Fixed Assets:
a) Proper records showing full particulars including quantitative details and situationof Fixed Assets of the company are being updated
b) The management physically verifies the fixed assets of the Company. No materialdiscrepancies were noticed on verification.
c) No substantial parts of the fixed assets have been disposed off during the year.
(ii) In respect of its Inventories:
a) The inventory has been physically verified during the year by the management. In ouropinion the frequency of verification is reasonable.
b) The procedure of physical verification of inventories followed by the management isreasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c) The company is maintaining proper records of inventory except that for the purposeof valuation the accounting system is not perfect enough to value inventory and for whichcompany relies on its own valuations systems. The discrepancies noticed on verificationbetween the physical stocks and the book records were not material.
(iii) In respect of Loan:
a) The company has not taken any loans from Companies Firms or other parties anddirectors and relative of the Director; Register maintained under section 301 of the Act.
b) In our opinion the terms and conditions on which loans have been taken fromcompanies firms or other parties listed in the register maintained under section 301 ofthe Companies Act 1956 and from the companies under the same management are not primafacie prejudicial to the interest of the company.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the companyand the nature of its business with regards to purchases of inventory fixed assets andwith regards to the sale of goods and services. During the course of our audit we havenot observed any continuing failure to correct major weaknesses in internal controls.
(v) In respect of Contracts or arrangements referred to in Section 301 of the CompaniesAct 1956:
According to the information and explanations given to us we are of the opinion thatthe transactions that need to be entered in into the register maintained under section 301of the Companies Act 1956 have been so entered.
In our opinion and according to the information and explanation given to us There isno any transaction more than Rs. 500000/- or more of purchase of goods and materials andsale of goods materials and services made in pursuance of contracts or arrangementsentered in the registers maintained under section 301 and aggregating during the year inrespect of each party so this provision is not applicable.
(vi) In our opinion and according to the information and explanations given to ussince the company has not accepted any deposits from the public the compliance with theprovisions of sections 58A 58AA or any other relevant provisions of the Act and the rulesframe there under with regard to the deposits accepted from the public are not applicableto the company. No order has been passed by the applicable authorities.
(vii) In our opinion the company has no required any internal audit systemcommensurate with the size and nature of its business.
(viii) The Central Government has not prescribed for maintenance of cost records undersection 209(1) (d) of the Companies Act 1956 for the products of the Company.
(ix) In respect of Statutory Dues:
a) According to the information and explanation given to us the company is generallyregular in depositing with the appropriate authorities undisputed statutory duesincluding Provident Fund ESIC Income Tax Sales Tax Excise Duty Cess and any othermaterial statutory dues applicable to it.
b) According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax sales tax custom duty excise duty and cesswere outstanding as at 31st March 2014 for a period of more than six monthsfrom the date they become payable.
(x) The company have accumulated losses of Rs. 3052948/-. The company has incurredcash profits during the financial year covered by our audit and the immediately precedingfinancial year.
(xi) In our opinion and according to the information and explanation given to us thecompany has opted for One Time Settlement Scheme for repayment of dues to financialinstitutions or banks in earlier year.
(xii) According to the information and explanations given to us the company has notgranted loans and advances on the basis of securities by way of pledge of sharesdebentures and other securities. Therefore the provisions of clause 4(xii) of theCompanies (Auditors Report) order 2003 are not applicable to the company
(xiii) In our opinion the company is not a Chit Fund or a NIDHI Mutual BenefitFund/Society. Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) order 2003 are not applicable to the company.
(xiv) In our opinion the company is not dealing in or trading in shares securitiesdebentures and other investments. Accordingly the provisions of the clause 4 (xiv) ofCARO 2003 are not applicable to the company as regards dealing in or trading in sharessecurities and other investments.
(xv) As informed to us the company has not given guarantees for loans taken by othersfrom banks or financial institutions.
(xvi) In our opinion on the basis of information & explanations given to us theterm loans were not applied for the purpose for which they were raised.
(xvii) In our opinion on the basis of information and explanations given to us fundsraised on Short term basis have not been used for Long-term investment.
(xviii) The company has not made any preferential allotment of shares to parties andcompanies covered in the register maintained under section 301 of the Act.
(xix) The company has not issued any debentures during the period covered by our auditreport.
(xx) The company has not made any public issue of shares during the period covered byour audit report.
(xxi) According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the year.
For Vishves A. Shah & Co.
(Vishves A. Shah)
M. No. 109944
Date : 28th April 2014
Place : Ahmedabad