TO THE MEMBERS OF
SWARNAJYOTHI AGROTECH & POWER LIMITED
Report on the Financial Statements We have audited the accompanying financialstatements of SWARNAJYOTHI AGROTECH & POWER LIMITED ("the company")whichcomprise the Balance Sheet as at 31 March 2015the Statement of Profit and Lossthe CashFlow Statement for the year then endedand a summary of significant accounting policiesand other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial positionfinancialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in Indiaincluding the Accounting Standards specified under Section 133of the Actread with Rule 7 of the Companies (Accounts) Rules2014.This responsibilityalso includes the maintenance of adequate accounting records in accordance with theprovision of the Act for safeguarding of the assets of the Company and for preventing anddetecting the frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesignimplementation and maintenance of internal financial controlthat were operatingeffectively for ensuring the accuracy and completeness of the accounting recordsrelevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatementwhether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.We have taken into account the provisions of the Actthe accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 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 the auditor'sjudgmentincluding the assessment of the risks of material misstatement of the financialstatementswhether due to fraud or error.In making those risk assessmentsthe auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances.An audit also includes evaluating the appropriatenessof accounting policies used and the reasonableness of the accounting estimates made byCompany's Directorsas well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
Basis for Qualified Opinion
With reference to the Note No.12 of the financial statements wherein the management ofthe company has considered Trade receivables amounting to Rs.95485831 as good and fullyrecoverable.In the absence of external confirmations from the customers from whom theseamounts are due or other alternate audit evidence to corroborate management's assessmentof recoverability of these balances and with regard to the age of these balanceswe areunable to comment the extent to which these balances are recoverable.
In our opinion and to the best of our information and according to the explanationsgiven to usexcept for the possible effect of the matters described in the basis forqualified opinion paragraphthe aforesaid financial statementsgive the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India;
a) in the case of the Balance Sheetof the state of affairs of the Company as at March312015;
b) in the case of the Statement of Profit and Lossof the loss for the year ended onthat date; and
c) in the case of Cash Flow statementof the cash flows for the year ended on thatdate.
Emphasis of Matter Paragraph
Note No.25 K to the Financial Statementswith regarding to transferring or settlingdues of the Bank through ARC subsequent to the reporting period is undergoing.
However our opinion is not modified in respect of this matter.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe actwe given in the Annexure a statement on the matters specified in the paragraph 3and 4 of the orderto the extent applicable.
As required by section 143(3) of the Actwe 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 Sheetthe Statement of Profit and Lossand Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinionthe aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Actread with Rule 7 of the Companies(Accounts) Rules2014.
e) On the basis of written representations received from the directors as on 31March2015taken on record by the Board of Directorsnone of the directors is disqualifiedas on 31 March2015from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition
ii. Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses
iii. There has been no delay in transferring amountsrequired to be transferredto theInvestor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
(This is the Annexure referred to in our Report of even date)
i.a. The Company has maintained proper records showing full particularsincludingquantitative details and situation of fixed assets.
b. All fixed assets have been physically verified by the Management during the yearinour opinionis reasonable having regard to the size of the Company and the nature of it'sAssets.No material discrepancies were noticed on such verification.
ii.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.
iii. a.The Company has not granted any loanssecured or unsecured to companiesfirms orother parties covered in the register maintained under section 189 of the CompaniesAct2013.
iv. In our opinionthere are adequate internal control procedures commensurate with thesize of the company and the nature of it's business for the purchase of inventory andfixed assets and for the sale of goods and services.During the course of our audit nomajor weaknesses have been noticed in internal controls in these areas.
v. The Company has not accepted any deposits from the public.
vi. In our opinionand according to the information and explanations given to usthecompany is not required to maintain cost records and accounts as provided under subsection (1) of section 148 of the Companies Act2013.
vii. a. According to the records provided to usthe Company is regular except forcertain cases in depositing undisputed statutory dues including Income TaxSalesTaxWealth TaxService TaxCustom DutyExcise DutyCess and any other statutory duesapplicable to it with appropriate authorities and according to the information andexplanations given to usexcept for below mentionedno undisputed amounts payableinrespect of Income- taxSales-taxWealth-taxService TaxCustoms DutyExcise Duty andCess were in arrears as at 31st March2015 for a period of more than six months from thedate they became payable.
|Particulars ||Rs.in Lakhs |
|Tax Deducted at Source ||12.43 |
|Providend Fund ||3.55 |
|Income Tax (A.Y.2014-15) ||9.20 |
b. According to the records of the Company and on the basis of the information andexplanations given to usthere are no dues in respect of VATService TaxDuty ofExciseIncome Taxcustoms dutywealth tax that have not been deposited with theappropriate authorities on account of any dispute.However following dues are not depositedon account of dispute by the company;
|Particulars ||Period to which the amount relates ||Forum Where the dispute is pending ||Amount (Rs in Lakhs) |
|Income Tax ||F.Y.2005-06 ||Mumbai Tribunal ||26.00 |
|Income Tax ||F.Y.2007-08 ||Mumbai Tribunal ||9.11 |
|Income Tax ||F.Y.2011-12 ||CIT (Appeals) ||36.14 |
c. The Company is not required to transfer any amount to investor education andprotection fund during the year in accordance with the relevant provisions of theCompanies Act1956 (1 of 1956) and rules made there under.
viii. The Company has no accumulated losses as at the end of the financial year and hasnot incurred cash losses during the financial year covered by our audit and in theimmediately preceding financial year.
ix. Based on our audit procedures and on the information and explanation given by themanagementthe company has defaulted in repayment of dues to the following financialinstitutionsbanks as at the end of the balance sheet date.Further as stated in Note no.25K of the financial statementsthe matter in this respect is pending before the CorporateDebt Restructuring cell.The company has not issued any debentures during the year and nothaving any outstanding dues to debenture holdershence clause shall not applicable to thecompany in this respect.
The details of the defaults of repayment are as follows;
| ||Rupees in Lakhs |
|Particulars ||(Principle + Interest) |
|1 State Bank of India ||1468.40 |
|2 IDBI ||375.70 |
x. The Company has not given any guarantee for loans taken by others from banks orfinancial institutions.
xi. In our opinionTerm Loans were applied for the purpose for which the said loanswere obtained.
xii. As per the checks carried out by usno fraud on or by the company has been noticedor reported during the year under report.
For RRK & Associates