| Report on the Financial Statements We have audited the accompanying
financial statements of SWARNAJYOTHI AGROTECH & POWER LIMITED ("the
company"),which comprise the Balance Sheet as at 31 March 2015, the
Statement of Profit and Loss, the Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and 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) of the Companies Act, 2013 ("the Act") with respect to
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 principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance 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 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 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 financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, 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 on the financial
statements.
Basis for Qualified Opinion
With reference to the Note No.12 of the financial statements wherein
the management of the company has considered Trade receivables
amounting to Rs.9,54,85,831 as good and fully recoverable. In the
absence of external confirmations from the customers from whom these
amounts are due or other alternate audit evidence to corroborate
management's assessment of recoverability of these balances and with
regard to the age of these balances, we are unable to comment the
extent to which these balances are recoverable.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effect of the matters
described in the basis for qualified opinion paragraph, 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 March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of Cash Flow statement, of the cash flows for the year
ended on that date.
Emphasis of Matter Paragraph
Note No.25 K to the Financial Statements, with regarding to
transferring or settling dues 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) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the act, we given in the Annexure a
statement on the matters specified in the paragraph 3 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 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, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us:
i. The Company does not have any pending litigations which would
impact its financial position
ii. Company did not have any long-term contracts including derivatives
contracts for which there were any material foreseeable losses
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor 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 particulars,
including quantitative details and situation of fixed assets.
b. All fixed assets have been physically verified by the Management
during the year, in our opinion, is reasonable having regard to the
size of the Company and the nature of it's Assets. No material
discrepancies were noticed on such verification.
ii.
a. The Management has conducted physical verification of inventory at
reasonable intervals during the year.
b. The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii.
a. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
iv. In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of it's
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit no major
weaknesses have been noticed in internal controls in these areas.
v. The Company has not accepted any deposits from the public.
vi. In our opinion, and according to the information and explanations
given to us, the company is not required to maintain cost records and
accounts as provided under sub section (1) of section 148 of the
Companies Act, 2013.
vii.
a. According to the records provided to us, the Company is regular
except for certain cases in depositing undisputed statutory dues
including Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and any other statutory dues applicable to it with
appropriate authorities and according to the information and
explanations given to us, except for below mentioned, no undisputed
amounts payable in respect of Income- tax, Sales-tax, Wealth-tax,
Service Tax, Customs Duty, Excise Duty and Cess were in arrears as at
31st March, 2015 for a period of more than six months from the date 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 and explanations given to us, there are no dues in respect
of VAT, Service Tax, Duty of Excise, Income Tax, customs duty, wealth
tax that have not been deposited with the appropriate authorities on
account of any dispute. However following dues are not deposited on
account of dispute by the company;
Particulars Period to which Forum Where the Amount
the amount dispute is (Rs in Lakhs)
relates pending
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 and protection fund during the year in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made there under.
viii.The Company has no accumulated losses as at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
ix. Based on our audit procedures and on the information and
explanation given by the management, the company has defaulted in
repayment of dues to the following financial institutions, banks as at
the end of the balance sheet date. Further as stated in Note no.25 K of
the financial statements, the matter in this respect is pending before
the Corporate Debt Restructuring cell. The company has not issued any
debentures during the year and not having any outstanding dues to
debenture holders, hence clause shall not applicable to the company 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 or financial institutions.
xi. In our opinion, Term Loans were applied for the purpose for which
the said loans were obtained.
xii. As per the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
For RRK & Associates
Chartered Accountants
R.Radha Krishna
Partner
M.No.210777
FRN.09785S
Date:02.12.2015
Place: Hyderabad
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