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Narmada Agrobase Ltd.

BSE: 535072 Sector: Agri and agri inputs
NSE: NARMADA ISIN Code: INE117Z01011
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NSE 00:00 | 17 Feb 27.00 1.25
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Narmada Agrobase Ltd. (NARMADA) - Auditors Report

Company auditors report

To

The Members of

NARMADA AGROBASE LIMITED Ahmedabad

REPORT ON THE FINANCIAL STATEMENTS OPINION

We have audited the accompanying financial statements of NARMADA AGROBASE LIMITED("the Company") which comprises the Balance Sheet as at March 31 2019 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant 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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2019 and its profit 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.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENT

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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities selection and application ofappropriate accounting policies; making judgements and estimates that are responsible andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF FINANCIAL STATEMENT

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 financial statements.

A further description of the auditor's responsibilities for the audit of the financialstatements is included in Annexure A. This description forms part of our auditor's report.

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 B statement on the matters specified in paragraphs 3 and4 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 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 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 written representations received from the directors as on March 312019 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct; and

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 C". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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:

i. The Company does not have any pending litigations for which provision have not beenmade which would impact its financial position.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any.

iii. The Provisions of transfer of funds to Investor Education and Protection

Fund not applicable to the Company.

For BHAGAT & ASSOCIATES
CHARTERED ACCOUNTANTS
(FIRM REGN. No. 101100W)
SD/-
(C.A. MANISH KUMAR BHAGAT)
PARTNER
M.No. 213498
Place : AHMEDABAD
Date: 30/05/2019

Annexure "A" to the Independent Auditor's Report Responsibilities for Auditof Financial Statement

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 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 todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has internal financial controls with reference to Financial Statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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.

For BHAGAT & ASSOCIATES
CHARTERED ACCOUNTANTS
(FIRM REGN. No. 101100W)
SD/-
(C.A. MANISH KUMAR BHAGAT)
PARTNER
M.No. 213498
Place : AHMEDABAD
Date: 30/05/2019

Annexure "B" to the Independent Auditor's Report

The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the financial statements for the year ended 31 March 2019 we report that;

I. In respect of Fixed Assets:

A. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

B. All the assets have been physically verified by the management during the year butthere is a regular program of verification which in our opinion is reasonable havingregard to the size of the company and the nature of its assets. No material discrepancieswere noticed on such verification.

C. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

II. In respect of Inventory:

As explained to us inventories have been physically verified during the year by themanagement at reasonable intervals on the basis of our examination of the records theCompany is generally maintaining proper records of its inventories. No materialdiscrepancy was noticed on physical verification of stocks by the management as comparedto book records. III. According to the information & explanations given to us and onthe basis of our examination of the books of account the Company has not granted anyloans secured or unsecured to companies firms or other parties listed in the registermaintained under Section 189 of the Companies Act 2013:

A. In our opinion and according to the information given to us the terms andconditions of the loans given by the company are prima facie not prejudicial to theinterest of the company.

B. The schedule of repayment of principal and payment of interest has been stipulatedand repayments of principle amounts and / or receipts of interest have been regular as perstipulations.

C. There are no overdue amounts as at the year-end in respect of both principal andinterest.

IV. In our opinion and according to the information & explanations given to us theCompany has complied with the complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingsecurities. V. According to the information and explanations provided to us the companyhas not accepted any deposit from the public. Therefore the provisions of Clause (v) ofparagraph 3 of the Order are not applicable to the Company.

VI. The Central Government has not prescribed maintenance of the cost records under

148(1) of the Companies Act 2013 in respect to the company's products. However theprescribed limits for maintenance of records have not been exceeded accordingly paragraph3(vi) of the Order is not applicable.

VII. In respect of Statutory Dues :

A. According to the records of the Company undisputed statutory dues including

Provident Fund Employees State Insurance Income Tax GST Tax Value Added Tax Dutyof Customs Service Tax Cess and other statutory dues have been generally regularlydeposited during the year by the company with the appropriate authorities. As explained tous the Company did not have any dues on account of employees' state insurance and duty ofexcise. According to the information and explanations provided to us no undisputedamounts payable in respect of provident fund income tax GST tax value added tax dutyof customs service tax cess and other material statutory dues were in arrears as at 31March 2019 for a period of more than six months from the date they became payable.

B. According to the information & explanations given to us and the records examinedby us there is no amount which have not been deposited on account of any disputed amountpayable in respect of income tax service tax GST tax customs duty and excise duty VATand cess.

VIII. Based on our audit procedures and on the information & explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to a financial institutions banks or debenture holders

IX. According to the information and explanations given to us and based on ourexamination of the records of the Company during the year the Company has raised by wayof IPO. All the provisions of clause have been complied with and the Money raised has beenutilised for the purpose as informed to us by the Management. Company has offered 2340000shares by way of initial public offer on (Date of Opening and Closing of IPO) 19-04-2018to 28-04-2018 and the IPO shares application were allotted on 17-4-2018. Further termloans and cash credit has been utilized for the purpose for which they were raised.

X. In our opinion and according to the information & explanations given to us wereport that no material fraud on or by the company has been noticed or reported during theyear nor have we been informed of such case by the management.

XI. In our opinion and according to the information and explanations given to us thecompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provision of section 197 read with Schedule 5 to the companiesAct2013.

XII. In our opinion and according to the information and explanations give to us the

Company is not a Chit Fund / Nidhi / Mutual Benefit Fund / Society. Therefore theprovision of clause 3(xii) of the Companies (Auditor's Report) Order 2016 is notapplicable to the Company.

XIII. In our opinion According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

XIV. In our opinion and according to the information and explanations provided to usand based on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year and hence reporting under clause (xiv) of paragraph 3 of theCompanies (Auditor's Report) Order 2016. Is not applicable.

XV. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

XVI. The Company is not required to be registered under sec. 45-IA of the Reserve Bankof

India Act1934.

For BHAGAT & ASSOCIATES
CHARTERED ACCOUNTANTS
(FIRM REGN. No. 101100W)
SD/-
(C.A. MANISH KUMAR BHAGAT)
PARTNER
M.No. 213498
Place : AHMEDABAD
Date: 30/05/2019