| 1. We have audited the accompanying financial statements of GENERA AGRI
CORP LIMITED (the "Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss for the year
ended, and Cash Flow Statement for the year ended on that date a
summary of significant accounting policies and other explanatory
information, which we have signed under reference to this report.
Management's Responsibility for the Financial Statements
2. 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 referred to in sub-section
(3C) of section 211 of 'the Companies Act, 1956' of India (the "Act")
read with the General Circular 15/2013 Dated 13.09.2013 of the Ministry
of Corporate Affairs in respect of section 133 of the Companies Act,
2013. 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 Fairview
and are free from material misstatements, whether due to fraud or
error.
Auditor's Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors' 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 auditors consider 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. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence, we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying 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, 2014.
b. In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
7. As required by 'the Companies (Auditor's Report) 0rder, 2003', as
amended by 'the Companies (auditor's Report) (Amendment) Order, 2004',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
maters specified in paragraphs 4 and 5 of the Order.
8. 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 purpose 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, 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 Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
general circular 15/2013 Dated 13.09.2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act.
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Annexure referred to in paragraph 3 of our report of even date:
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situations of Fixed
Assets.
b. The fixed Assets have been physically verified by the management.
There is annual verification of fixed assets, which in our opinion is
reasonable having regard to the size of the company and the nature of
its asset. No material discrepancies have been noticed on such
verification.
c. During the year, the Company has not disposed of any part of the
plant or machinery.
2. a. The inventory has been physically verified during the year by the
management. In our opinion the frequency of verification is reasonable.
b. The procedures of physical verification of inventories followed by
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. The
discrepancies noticed on such verification between the physical stocks
and the book records were not material.
3. a. As informed the company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 310 of the Companies Act, 1956.
b. As informed, the Company has taken loans from other companies
covered in the registers maintained under section 301 of the Companies
Act, 1956.
No of parties: 2 amount involved Rs 680 lakhs.
The company has taken interest free loans from the above parties. Hence
the rate of interest and other terms conditions in respect of loans
taken by the company does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
5. According to the information and explanations given to us, there
were no transactions of purchase and sale of goods and materials made
in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the companies act 1956, and aggregating
value during the year Rs. 5,00,000/- or more in respect of each party.
6. In our opinion the company has an internal audit system commensurate
with the size and nature its business.
7. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits during the year.
8. According to the information and explanation given to us,
maintenance of cost records is not required under section 209(1)(D) in
respect of business activities carried out by the company.
9. The company has no accumulated losses as on 31st March, 2014 and it
has not incurred any cash losses in financial year ended on the date or
in the immediately preceding financial year
10. a. The company is regular in depositing with appropriate
authorities Insurance, Sales Tax, and other material statutory dues
applicable to it except PF and ESI and income tax. The arrears of
income tax is Rs. 2.66 lakhs for a period more than six months from the
date they became payable.
b. According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
Financial Institution, Bank or Debenture Holders.
12. According to the information given to us, during the year the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or nidhi/mutual
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
15. In our opinion and explanations given to us, the company has not
given any guarantees for loans taken by others from banks or financial
institutions.
16. In our opinion and explanations given to us, the company has not
taken any Term loans during the period under audit.
17. According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, and cash flow
statement, we report that the no funds raised on short-term basis have
been used for the long-term investment. No long-term funds have been
used to finance short-term assets except permanent working capital.
18. According to the information and explanation given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 310 of
the Companies Act 1956.
19. According to the information and explanation given to us, the
company has not created any security in respect of debentures.
20. The company has not raised any money by public issues.
21. According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
FOR HARI VARA PRASADA & ASSOCIATES
Chartered Accountants
Firm Registration No. 004887s
(Y. HARI VARA PRASADA RAO)
Place: Hyderabad Proprietor
Date: 30/05/2014 Membership No. 029740 | 