| We have audited the accompanying financial statements of SABERO
ORGANICS GUJARAT LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March , 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report 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 it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs).
(e) On the basis of the written representations received from the
directors as on31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 1 under Report on Legal and Regulatory
Requirements of our report of even date)
(i) Having regard to the nature of the Company's business/
activities/result, clause (xiii) and Clause (xv) of paragraph 4 of the
order are not applicable to the Company for the year.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) Since there is no disposal of substantial part of fixed assets
during the year, paragraph 4(i)(c) of the Order is not applicable.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) According to the information and explanations given to us, there
are no parties covered under section 301 of the Companies Act, 1956. In
view of what has been stated above, sub-clauses (a), (b), (c), (d),
(e), (f) and (g) of clause (iii) of Paragraph 4 of the Order are not
applicable to the Company for the year.
(v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) According to the information and explanations given to us, there
are no parties covered under section 301 of the Companies Act, 1956. In
view of what has been stated above, clause (v) of Paragraph 4 of the
Order is not applicable to the Company for the year.
(vii) According to the information & explanations given to us, the
Company has not accepted any deposits from the public during the year.
Hence, clause (vi) of paragraph 4 of the Order is not applicable to the
Company for the year.
(viii) In our opinion, the Company has an adequate internal audit
system commensurate with the size and nature of its business.
(ix) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(x) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at March 31, 2014 for a period of more than six
months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2014 on account of disputes are given below:
Name of the Nature of Forum where Dispute
Statute Dues is pending
Income Tax Act, 1961 Tax/Penalty/ Income Tax Appellate
Interest Tribunal
Income Tax Act, 1961 Tax/Penalty/ Commissioner of
Interest Income Tax (Appeals)
Income Tax Act, 1961 Tax/Penalty/ Additional Commissioner
Interest of Income Tax
The Central Excise Duty/Penalty/ Commissioner
Act, 1944 Interest (Assessing Authority)/
Deputy Commissioner/
The Central Excise Duty/Penalty/ Commissioner (Appeal)
Act, 1944 Interest
The Central Excise Duty/Penalty/ Customs Excise and
Act, 1944 Interest Service Tax Tribunal
The Central Excise Duty/Penalty/ High Court
Act, 1944 Interest
The Central Excise Duty/Penalty/ Joint secretary
Act, 1944 Interest Ministry of Finance
Nameof the Statue Period to which Amount Amount
the amount involved Paid Under
relates (Rs. in lakhs) protest
(Rs. In Lakhs)
Income Tax Act, 1961 A.Y. 2005-06 46.15 28.19
to 2008-09
Income Tax Act, 1961 A.Y. 2009-10 597.22 145.65
and 2011-12
Income Tax Act, 1961 A.Y. 2010-11 70.94 -
The Central Excise
Act, 1944 2002-03 to 7.51 -
2009-10
The Central Excise 2011-12 1.76 -
Act, 1944
The Central Excise 2006-07 to 60.94 -
Act, 1944 2011-12
The Central Excise 2005-06 21.71 -
Act, 1944
The Central Excise 2009-12 5.81 -
Act, 1944
(xi) The Company does not have any accumulated losses as at the year
end and has not incurred any cash losses during the current year and in
the immediately preceding financial year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions.
(xiii) According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities. Hence,
clause (xii) of paragraph 4 of the Order is not applicable to the
Company for the year.
(xiv) According to the information and explanations given to us, the
Company is not dealing in shares, debentures and other investments.
Hence, clause (xiv) of paragraph 4 of the Order is not applicable to
the Company for the year.
(xv) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xvi) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that no funds raised on short term basis have been used during
the year for long- term investment.
(xvii) According to the information and explanations given to us, there
are no parties covered under section 301 of the Companies Act, 1956.
Hence clause (xviii) of paragraph 4 of the Order is not applicable to
the Company for the year.
(xviii)To the best of our knowledge and according to the information
and explanations given to us, the Company has not issued any debentures
during the year. Hence, clause (xix) of paragraph 4 of the Order is not
applicable to the Company for the year.
(xix) To the best of our knowledge and according to the information and
explanations given to us, the Company has not raised any money by
public issue during the year. Hence, clause (xx) of paragraph 4 of the
Order is not applicable to the Company for the year.
(xx) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No. 117364W)
Sd/-
Ketan Vora
Partner
MUMBAI, April 23, 2014 (Membership No. 100459) | 