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Riverdale Foods Ltd.

BSE: 530157 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE300E01018
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Riverdale Foods Ltd. (RIVERDALEFOODS) - Auditors Report

Company auditors report

RIVERDALE FOODS LIMITED ANNUAL REPORT 2011-2012 AUDITORS' REPORT To The members of Riverdale Foods Limited 1. We have audited the attached Balance Sheet of Riverdale Foods Limited (the Company) as at March 31, 2012, the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. Without qualifying our opinion, we draw attention to: Note No. 2(a) to the financial statement. For reasons mentioned therein, these financial statements have been prepared on a 'going concern' basis, inspite ofthe accumulated losses at the year end equating the shareholders' funds as in accordance with the Rehabilitation Scheme, sanctioned by the Hon'ble BIFR on July 02, 2010, the Strategic Investor being the Holding Company is committed to financially support the operations and the fund requirements ofthe Company for refurbishment of existing Plant and Machinery. 4. As required by the Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditors' Report) (Amendment) Order, 2004, [Order], issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 5. Further to our comments in Annexure referred to above, were port that: (a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; (b) In our opinion, proper books of account, as required by law have been kept by the Company, so far as appears from our examination of those books; (c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account maintained by the Company; (d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; (e) None of the Directors of the Company who held such office as on November 30,2007, are qualified to be appointed as Director of the Company of any other public company, in terms of clause (g) of subsection (1) of section 274 ofthe Companies Act, 1956 as the Company had failed to file its Annual Accounts and Annual Returns for the financial years 2004-05, 2005-06 and 2006-07 till November 30, 2007, being the due date upto which the Annual Accounts and Annual Return for the year ended March 31,2007 was required to be filed. The aforesaid Annual Accounts and Annual Returns were filed by the Company on February 28, 2008. The Company has thereafter failed to file its Annual Accounts and Annual Returns for the financial years 2007-08, 2008-09 and 2009-10 and in terms of the provisions of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956, all the persons who held office as directors of the Company, in addition to the directors referred to in the above para, are not qualified from being appointed as director of any other public company, w.e.f. November 30, 2010, being the due date upto which Annual Accounts and Annual Return for the year ended March 31, 2010 was required to be filed. During the year, the Company filed the Annual Accounts for the financial years 2007-08, 2008-09, 2009-10 and 2010-11 with the Registrar of Companies. However the Annual Returns for these years could not be filed due to non existence of Director Identification Number (DIN) of two of its Directors, Mr. Raja Karnam and Mr. Keshav Rao. The disqualification is continuing on the date of our Report. (f) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read together with significant accounting policies and notes thereon and attached thereto give in the prescribed manner the information required by the Companies Act, 1956, give a true and fair view in conformity with the accounting principles generally accepted in India: a. in the case ofthe Balance Sheet, ofthe state of affairs ofthe Company as at March 31, 2012; b. in the case of the Statement of Profit and Loss, of the loss incurred by the Company for the year ended on that date; and c. in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. 117, New Delhi House, B. Bhushan & Co. 27, Barakhamba Road, Chartered Accountants New Delhi-110001 Firm Regn. No.-001596N By the hand of Sd/- Vishwanand Keshri Partner May 30, 2012 Membership no. 505508 [Referred to in paragraph 4 of the Auditors' Report of even date to the members of Riverdale Foods Limited on the financial statements for the year ended March 31, 2012] i) In respect of fixed assets: a) The Company has not maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b) None of the fixed assets were physically verified by the management during the year. In the absence of any physical verification of fixed assets, we are unable to comment whether there existed any material discrepancies as compared to book records. Discrepancies arising, if any, which may have a material impact, have not been considered in the accounts for the year. Further certain parcels of land on which factory building and structures are constructed, and payments whereof were made by the Company, are presently held in the name of some of the former and present Directors ofthe Company. Necessary legal formalities have to be complied for transfer ofthe said parcels of land in favor ofthe Company. c) As informed and explained to us, the Company has not disposed off a substantial part of its fixed assets during the year. ii) The Company is not maintaining any inventory, as the Company is out of operations since last six years, hence sub-clause (a), (b) and (c) of clause (ii) of the said Order is not attracted. iii) a) The Company has not given any trade advance to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956, hence sub-clauses (a),(b),(c) and (d) of clause (iii) of the said Order are not applicable. b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 ofthe Companies Act, 1956, hence sub clauses (e),(f)and (g) of clause (iii) ofthe said Orderare not applicable. iv) The Company does not have an internal control system commensurate with its size and the nature of its business for the purchase of inventory, fixed assets and also for the sale of goods. v) As the Company has not entered into any contracts or arrangements referred to in section 301 ofthe Companies Act, 1956, hence sub clause (a) and (b) of clause (v) ofthe said Orderare not attracted. vi) The Company has not accepted any deposits from the public within the meaning of sections 58A, 58AA or any other relevant provisions ofthe Companies Act, 1956and the rules framed there under. vii) The Company does not have an internal audit system. viii) According to the information and explanations given to us, the Central Government has prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 209 ofthe Companies Act, 1956. However the Company has not carried out any prescribed activities during the year and its operation is closed, the Company has not made and maintained any cost accounts/records. ix) a) The Company has undisputed dues outstanding and payable on account of Provident Fund, Gram Panchayat, Sales tax Deferral dues aggregating to Rs. 99.93 Lac as detailed hereunder. The same were outstanding at the year end. for a period of more than six months from the date they became payable. Amounts payable to Amount (Rs. lacs) Provident Fund 16.00 Gram Panchayat 4.00 Sales Tax Deferral 79.93 Total 99.93 b) According to the information and explanations given to us, there are no dues of income tax, wealth tax, custom duty, excise duty, service tax and cess that have not been deposited with appropriate authorities on account of any dispute. x) The accumulated losses of the Company are more than 50% of its net worth as at March 31, 2012. The Company has incurred cash loss in the financial year ended on that date and also in the immediately preceding financial year. xi) According to the records of the Company examined by us and the information and explanation given to us, the Company has no loan outstanding towards financial institutions and banks. xii) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. xiii) The provisions of any special statute applicable to chit fund/nidhi /mutual benefit fund/societies are not applicable to the Company. xiv) The Company is not dealing or trading in shares, securities, debentures and other investments. xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. xvi) In our opinion and according to the information and explanations given to us, the Company has not obtained any term loans during the year. xvii) On the basis of an overall examination of the Balance Sheet of the Company, in our opinion and according to the information, explanations and representation given to us by the management, we report that no short term funds have been used for long term applications. xviii) The Company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956. xix) The Company has not issued any debentures during the year. xx) The Company has not raised any money by way of public issue during the year. xxi) Based upon the audit procedure performed and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit, that causes the financial statement to be materially misstated. 117, New Delhi House, B. Bhushan & Co. 27, Barakhamba Road, Chartered Accountants New Delhi-110001 Firm Regn. No.-001596N By the hand of Sd/- Vishwanand Keshri Partner May 30, 2012 Membership no. 505508