TO THE MEMBERS OF WHITE ORGANIC AGRO LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statementsof White Organic Agro Ltd (the Company) which comprise the Balance Sheet asat 31 March 2018 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Standalone Ind AS FinancialStatements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 (the Act) with respect to thepreparation of these standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance including other comprehensive incomecash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error
Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit. In conducting our audit we have taken intoaccount the provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and theRules made thereunder.
We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements.
We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2018 and its profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date
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 of the Companies Act 2013 and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanation given to us we give in Annexure 1 a statement onthe matters specified in paragraphs 3 & 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit. b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books. c) The Balance Sheetthe Statement of Pro t and Loss including other comprehensive income the Cash FlowStatement and the statement of changes in equity dealt with by this Report are inagreement with the books of account. d) In our opinion the aforesaid Standalone Ind ASFinancial Statements comply with the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with relevant rules issued thereunder. e) On the basis of thewritten representations received from the directors as on 31st March 2018 taken onrecord by the Board of Directors none of the directors is disquali ed as on 31st March2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls wegive our separate Report in Annexure 2. g) With respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us: i. The Company does not have any pending litigationswhich would impact its financial position.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses. iii. There hasbeen delay in transferring unpaid dividends amounting to 45669/- to Investor Educationand Protection Fund by the company which fall due for transfer in FY 2002-03 but has notbeen transferred till 31st March 2018. The management of the Company was changed duringFY 2010-11 and new management is in the process of transferring the unpaid dividend toInvestor Education & Protection Fund.
FOR GUPTA RAJ & CO. CHARTERED ACCOUNTANTS
FIRM NO. 001687N
CA NIKUL JALAN PARTNER MEMBERSHIP NO. 0112353
DATED : MAY 302018
Annexure 1 to the Independent Auditors' Report
(Referred to in paragraph 1 under Report on Other Legal andRegulatory Requirements' section of our report of even date)
(i) In respect of its fixed assets:
(a) The company has maintained proper records showing full particularsincluding quantitative details and situation of the fixed assets. However no separatefixed asset register is maintained.
(b) The fixed assets are physically verified by the managementaccording to a phased program designed to cover all the items over a period which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. Pursuant to the program a portion of the fixed assets have been physicallyverified by the management during the year and no material discrepancies were noticed onsuch physical verification. However no written report is available.
(c) The title deeds of immovable properties recorded in the books ofaccount of the Company are held in the name of the Company.
(ii) The inventory has been physically verified by management duringthe year. In our opinion the frequency of verification is reasonable. As informed nomaterial discrepancies were noticed on physical verification carried out during the year.
(iii) As per the information and explanation given to us the Companyhas not granted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theAct. Therefore provisions of sub clause (a) (b) and (c) of clause (iii) of paragraph 3 ofthe Order are not applicable to the Company.
(iv) As per the information and explanation given to us in respect ofloans investments guarantees and securities the Company has complied with theprovisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within theprovisions of Sections 73 to 76 of the Act and the rules framed there under. Thereforethe provisions of clause (v) of paragraph 3 of the Order are not applicable to theCompany.
(vi) As per the information and explanations given to us in respect ofthe class of industry in which the Company falls the maintenance of cost records has notbeen prescribed by the Central Government under sub-section (1) of section 148 of theCompanies Act 2013. Therefore the provisions of clause (vi) of paragraph 3 of the Orderare not applicable to the Company.
(vii) In respect of statutory dues:
(a) The company is generally regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues applicable to it with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of above dues were in arrears as at 31st March 2018 for aperiod of more than six months from the date they became payable.
(b) According to the information and explanations given to us thereare no dues of income tax or sales tax or service tax or duty of customs or duty of exciseor value added tax or cess which have not been deposited on account of any dispute.
(viii) According to the information and explanation given to us thecompany has not defaulted in repayment of dues to bank / financial institutions. TheCompany has not taken loan from government or has no dues to debenture holders.
(ix) The Company has not raised moneys by way of initial public offeror further public offer (including debt instrument) or term loans hence reporting underclause (ix) of the Caro 2016 order is not applicable to company
(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud by the Company or any fraud on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any suchinstance by the management.
(xi) As per the information and explanations given to us managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V to the companies Act 2013.
(xii) In our opinion the Company is not a Nidhi Company. Thereforethe provisions of clause (xii) of paragraph 3 of the Order are not applicable to theCompany.
(xiii) As per the information and explanation given to us alltransactions entered into by the Company with the related parties are in compliance withSections 177 and 188 of Act where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Therefore the provisions of clause (xiv) of paragraph 3 of the Order are notapplicable to the Company
(xv) The Company has not entered into any non-cash transactions withdirectors or persons connected with him. Therefore the provisions of clause (xv) ofparagraph 3 of the Order are not applicable to the Company.
(xvi) As per the information and explanation given to us the Company isnot required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.
FOR GUPTA RAJ & CO.
FIRM NO. 001687N
CA NIKUL JALAN
MEMBERSHIP NO. 0112353
DATED : MAY 302018
Annexure 2 to the Independent Auditors' Report
(Referred to in paragraph 2 under Report on Other Legal andRegulatory Requirements' section of our report of even date) Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 (the Act)
We have audited the internal financial controls over financialreporting of WHITE ORGANIC AGRO LTD (the Company) as of 31st March 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the Guidance Note) and the Standards on Auditing specified undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both issued by the ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI. Ouropinion is not modified in respect of this matter.
FOR GUPTA RAJ & CO. CHARTERED ACCOUNTANTS
FIRM NO. 001687N
CA NIKUL JALAN PARTNER MEMBERSHIP NO. 0112353
DATED : MAY 302018