To The Members of
SAMPRE NUTRITIONS LIMITED Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS Financial Statements of SAMPRE NUTRITIONSLIMITED ("the company") which comprise the Balance Sheet as at 31 March 2018the Statement of Profit and Loss (Including Other Comprehensive Income) Statement of CashFlows and the Statement of changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone Ind AS financial statement".
Management's Responsibility for the Standalone Financial Statements
The company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 ('the act') with respect to the preparation of theseStandalone Ind AS financial statements that give a true and fair view of the state ofaffairs profit/loss (including other comprehensive income) cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under Section 133 ofthe Act.
This responsibility includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and effectively design implementation and maintenance of adequate internalfinancial controls that were operating for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Standalone Ind ASfinancial 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 Ind AS Financial Statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS Financial Statements whether due to fraud or error. In making those riskassessments the
auditor considers internal financial control relevant to the Company's preparation ofthe Ind AS Financial Statements that give true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS Financial Statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the standalone Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs of the Company as at 31st March 2018 its Profit (including other comprehensiveincome) its cash flows and its changes in equity for the year ended on that date.
Report on other Legal and Regulatory Requirements
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 given in the 'Annexure A' statement on the matters specified in the paragraph3 and 4 of the order to the extent applicable.
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 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 Cash Flow Statement andstatement of changes in equity dealt with by this Report are in agreement with the booksof account.
d) In our opinion the aforesaid Ind AS Financial Statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act.
e) On the basis of written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of theAct.
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 B' and
g) With respect to the other matters included in the Auditor's Report in accordancewith the Rule 11 of the Companies (Audit and Auditors) Rules 2014 to our best of ourinformation and according to the explanations given to us :
I. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS financial statements - Refer to Note No. 27 to theStandalone Ind AS financial statements;
ii. Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses
iii. During the year the Company has not required to transfer any Investor Educationand Protection Fund.
| ||For R R K & Associates |
Chartered Accountants FRN No. 09785S
|Date : 29-05-2018 Place : Hyderabad ||Sd/- |
R. Radha Krishna
To The Independent Auditor's Report (This is the Annexure referred to in our Report ofeven date)
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. All fixed assets have been physically verified by the Management during the year inour opinion is reasonable having regard to the size of the Company and the nature of it'sAssets. No material discrepancies were noticed on such verification.
c. According to the information and explanations given to us all the title deeds ofimmovable properties are held in the name of the company.
a. The Management has conducted physical verification of inventory at reasonableintervals during the year.
b. The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c. The Company is maintaining proper records of inventory and no material discrepancieswere noticed on physical verification.
a. The Company has granted unsecured Advances to the parties covered in the registermaintained under section 189 of the Companies Act 2013.
b. The terms of the loans granted above are not prejudicial to the interest of thecompany and repayments including interest thereon have been regular according to theschedule as stipulated there under.
iv. The Company has been complied with provisions of section 185 and 186 of theCompanies Act 2013 wherever applicable in respect of loans investments guarantees andsecurity.
v. The Company has not accepted any deposits from the public.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to therules made by the Central Government under section 148(1) of the companies Act 2013 andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. We have however not made a detailed examination of these records with aview to determine whether they are accurate or complete.
a. According to the records provided to us the Company is regular in depositingundisputed statutory dues including Income Tax Sales Tax Wealth Tax Service Tax CustomDuty Excise Duty Cess and any other statutory dues applicable to it with appropriateauthorities and according to the information and explanations given to us no undisputedamounts payable in respect of Income- tax Sales-tax Wealth-tax Service Tax CustomsDuty Excise Duty and Cess were in arrears as at 31st March 2018 for a period of morethan six months from the date they became payable.
b. According to the records of the Company and on the basis of the information andexplanations given to us except for below mentioned there are no dues in respect of VATService Tax Duty of Excise Income Tax customs duty wealth tax that have not beendeposited with the appropriate authorities on account of any dispute.
|Name of the Statute ||Nature of the Dues ||Amount Rs. ||Period to relates ||Forum where pending |
|Central Excise Act 1944 ||Excise Duty ||Excise Duty Rs.74 45614/- & Penalty of Rs.74 45614/-. ||From April-2007 To March-2011 ||CESTAT Bangalore Final Order no: 20533-20535/ |
2014 dated: 7/4/2014. Remand back to Commissioner (Appeal- Attended PH during June -
|Central Excise Act 1944 ||Excise Duty ||Excise Duty Rs.20 03700/- & Penalty of Rs.60 00000/-. ||From April-2011 To January-2012. ||CESTAT BangaloreOIA 42/2013 submitted on 31-01- 2014Remand back to Commissioner of Central Excise Appeals. |
|Central Excise Act 1944 ||Excise Duty ||Excise Duty of Rs.21 83993/- and Penalty of Rs.2 00000/-. ||From February-2012 To September-2012. ||Remand back to Commissioner of Central Excise Appeals O.R.No.34/2013. Attended PH during June -2015. |
|Central Excise Act 1944 ||Excise Duty ||Excise Duty of Rs.10 05000/-. ||From September- 2012-March 2013. ||Remand back to Commissioner of Central Excise Appeals. Attended PH during June -2015. |
|Central Excise Act 1944 ||Excise Duty ||Excise Duty on Freebies Paid Rs. 63 49974/-. ||From June-2008 To January-2013 ||Commissioner of Central Excise |
O.R. No. 127/2013. Dated:02.0 7.2013 appeal filed on 22.12.2014.
|Central Excise Act 1944 ||Excise Duty ||Excise Duty on Freebies Paid Rs. 11 54946/-. ||From January- 2013- Dec 2013 ||CESTAT Bangalore SCN:40/2014 issued 03-03- 2014.Appeal filed on 24.07.2015 |
|Central Excise Act 1944 ||Excise Duty ||Excise Duty on Freebies Payable Rs.9596005/-. ||From Apr-2014- Dec 2014 ||O.R. No. 101/2015-Adjn (Commr.) (C.E.) O.I.O No. HYD-EXCUS-004-COM- 041-15-16 Dated: |
15.10.2015. Appeal Filed on
|Central Excise Act 1944 ||Excise Duty ||Excise Duty on Freebies Payable Rs.25186222/- ||From Apr-2014- Dec 2014 ||O.I.O No.HYD-EXCUS-0004- COM-017-15-16 Dated: 24.06.2015. Appeal Filed on 08.10.2015 |
|Central Excise Act 1944 ||Excise Duty ||Excise Duty on PME Case |
|From Jan- 2015- Oct 2015 ||CESTAT |
|Central Excise Act 1944 ||Excise Duty ||Excise Duty on PME Case Rs.750000/- ||From Nov-2015- Jun 2017 ||CCE(Appeals) Hyderabad |
|Central Excise Act 1944 ||Excise Duty ||Excise Duty on Valuation for Rs.8623672/- ||F.Y.2010-11 ||DGCEI |
|Income Tax Act 1961 ||Income Tax ||Rs.42 Lakhs ||A.Y.2005-06 ||CIT (A) Circle 3(1) Hyderabad |
viii. The Company has not defaulted in repayment of loans or borrowings to thefinancial institutions or banks or government or dues to debenture holders.
ix. In our opinion Term Loans were applied for the purpose for which the said loanswere obtained.
x. As per the checks carried out by us no fraud on or by the company has been noticedor reported during the year under report.
xi. According to the records of the Company and on the basis of the information andexplanations given to us managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with scheduleV of the Companies Act 2013.
xii. The Company is not a Nidhi Company.
xiii. In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards;
xiv. In our opinion and according to the information and explanations given to us thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review.
xv. In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him.
xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For RRK & Associates
Chartered Accountants FRN No.09785S
Date : 29-05-2018 Place : Hyderabad
Annexure - B to the Auditors' Report
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 SAMPRENUTRITIONS LIMITED ("the Company") as of 31 March 2018 in conjunction with ouraudit of the Ind AS Financial Statements of the Company for the year ended on that 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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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 controls 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 2018 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 RRK & Associates
Chartered Accountants Firm Registration No. 09785S
Date : 29-05-2018 Place : Hyderabad