To the Members
Natraj Proteins Ltd.
Report on the audit of the Ind AS Financial Statements:
We have audited the attached Ind AS Financial Statements of Natraj Proteins Ltd.(the Company) which comprise the Balance Sheet as at March 31 2019 the Statement ofProfit and Loss (Including Other Comprehensive Income) the Cash Flow Statement and TheStatement of Changes in Equity for the year ended on that date 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 Ind AS Financial Statements read with significant accounting policiesgive the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India:
1. In the case of Balance Sheet of the state of affairs of the Company as at31-03-2019.
2. In the case of Statement of Profit and Loss (including Other Comprehensive Income)of the Company for the year ending on 31-03-2019.
3. In the case of Cash Flow Statement of the cash flows and the Statement of changes inequity of the Company for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the financial statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by The Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the rules there under and we have fulfilled our ethical responsibilities inaccordance with these requirements and Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis of our opinion.
Emphasis of Matter
The Company is not required to spend any fresh amount towards CSR for the financialyear 2018-19 being the 2% of the average of the net profits for the previous three yearsas stated above towards CSR is negative. Further that the Company is carrying the unspentamount of Rs. 40.56 Lakhs for the year 2014-15 2015-16 and 2016-17. However the companyhas expended Rs. 7.08 Lakhs towards the CSR activities from it. Thus the Company is nowrequired to spend total amount of Rs. 33.48 Lakhs.
Our opinion is not modified in respect of this matter.
Management 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 preparation of these Ind ASFinancial Statements that give a true and fair view of the financial position financialperformance (including other comprehensive income) cash flows and changes in equity ofthe Company in accordance with the Accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified in the Companies (Indian AccountingStandards) Rules 2015 (as Amended) under Section 133 of the companies Act 2013.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the companyand for preventing and detecting frauds and other irregularities: selection andapplication of appropriate accounting policies: making judgments and estimates that arereasonable and prudent : and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial Statements that give a true and fair view and are free from materialmisstatement whether due 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.
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatements 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 SA' swill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic benefits of users taken on the basis ofthese financial statements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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 a statement on the maters specified in paragraphs 3and 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 purpose of our audit.
b) In our opinion proper books of accounts as required by law have been kept by theCompany so far it appears from our examination of those books.
c) The Balance Sheet Statement of Profit and Loss(including other comprehensiveincome) the Cash Flow statement and the Changes in the Equity dealt with by this Reportare in agreement with the books of account.
d) In our opinion the aforesaid Ind AS Financial Statements comply with the AccountingStandards specified under section 133 of the Companies Act 2013 read with Rule 7 ofCompanies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2019 from being appointed as a director in terms of section164(2) of the Act.
f) With respect to adequacy of the internal financial controls overfinancial reporting of the Company and operating effectiveness of such controls refer ourseparate report in Annexure B. Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting.
g) With respect to the other matters to be included in the Auditors 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 has disclosed the impact of pending litigations on its financialposition in the Ind AS Financial Statements. Refer to Note No 26 B 1 (b) (d) and (e)tothe Financial Statements.
ii. The company does not have any long term contract or long term derivative contractsand there is no requirement of making any provision on such contracts/derivatives.
iii. There is no incidence of any requirement of transfer any amount to the investorEducation and Protection fund by the company during the year.
For ANUP SHRIVASTAVA&ASSOCIATES
CA SUDEEP MOITRA
Place: Camp Itarsi
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
[Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' in the Independent Auditor Report of even date to the members of NATRAJPROTEINS LTD ("The Company") on the financial statements for the year endedMarch 31 2019]
i. (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management in accordance withregular program of verification which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. (Discrepancies have been appropriatelydealt with in the books of accounts).
(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) The management has conducted physical verification of inventories at all itslocations at reasonable intervals during the year. The procedures of physical verificationof inventory followed by management are in our opinion reasonable and adequate inrelation to the size of the company and the nature of its business. The company ismaintaining proper records of inventory and no material discrepancies were noticed onphysical verification.
(iii) The company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013 and there are no overdue amount of any loan granted to companies or firm or otherparties mentioned in the register maintained under section 189 of the Companies Act 2013.
(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loan or made investment or guarantee or offered security toany party which requires compliance of provisions of section 185 and 186 of the Act.
(v) The company has not accepted deposits from the public during the year withreference to Section 73 to 76 of the Companies Act 2013 read with The companies(Acceptance of Deposits) Rules 2014 and other relevant provisions of the Act.
(vi) We have broadly reviewed the books of account maintained by the company pursuantto rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same with a view to determining whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxsales tax value added tax GST duty of customs service tax cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities to the extent applicable.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax GST duty ofcustoms 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 and explanations given to us and as per the recordsof the company there are no material dues which have not been deposited with theappropriate authorities on account of any dispute. However according to information andexplanations given to us the following dues of income tax VAT and cess which have notbeen deposited on account of dispute are given below:
|Name of the Statue ||Nature of dues ||Amount (Rs. in lakhs) ||Year to which it pertains ||Forum at which case is pending |
|Income Tax Act 1961 ||Income Tax ||15.90 ||1994-95 ||Before Settlement Commission. Petition filed before MP High Court Jabalpur for stay. |
| || || ||1995-96 || |
| || || ||1996-97 || |
|MP VAT Act 2002 ||VAT ||5.05 ||2006-07 ||MP Commercial Appellate Board Bhopal |
|MP VAT Act 2002 ||VAT ||4.70 ||2011-12 ||Commissioner Appeals |
(viii) The Company has not defaulted in repayment of loan or borrowings from thefinancial institution banks and government or debenture holders. The company has notissued any debentures.
(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.
(x) Based on our audit procedures and according to the information and explanationsgiven to us no material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give 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 the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS Financial Statements as required by the IndAS 24 Related Party Disclosures specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014.
(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
(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 section 45-IA of the ReserveBank of India Act 1934.
For ANUP SHRIVASTAVA & ASSOCIATES
CA SUDEEP MOITRA
Place: Camp Itarsi
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report of even date to the member of NATRAJPROTEINS LTD. on the Financial Statements for the year ended March 31 2019 ]
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of NATRAJPROTEINS LIMITED ("the Company") as of 31 March 2019 in conjunction with ouraudit of the Standalone Ind AS Financial Statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:
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. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Financial Statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial control over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For ANUP SHRIVASTAVA & ASSOCIATES
CA SUDEEP MOITRA
Place: Camp Itarsi