| Report on the Financial Statements:
We have audited the accompanying financial statements of NAGARJUNA AGRI
TECH LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and 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:
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 ("the Act") read with the General Circular
15/2013 dated 13th September, 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 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 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 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 accounting policies used and the reasonableness of the accounting
estimates made by 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 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 Profit and Loss Account, of the loss 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:
1 As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 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 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
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
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 to Auditor's Report NAGARJUNA AGRI TECH LIMITED
Referred to in Paragraph 1 of 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) The management has conducted the physical verification of fixed
assets during the year under audit, which in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verification,
c) The company has not disposed substantial part of the fixed assets
during the year under audit.
ii) The company does not have any inventory during the period under
audit
iii) During the year the company has not granted any loans to parties
covered in the register maintained under section 301 of the Companies
Act, 1956. During the year the company has taken interest free
unsecured loan from one party covered in the register maintained under
section 301 of the Companies Act, 1956 and the maximum amount involved
was Rs.8,00,000/- and the year end outstanding balance was Rs. Nil.
According to the information and explanations given to us the terms and
conditions of the loan are not prima facie prejudicial to the interests
of the company.
iv) In our opinion and according to the Information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to the purchases of inventory, fixed assets and with regard to the sale
of goods. During the course of audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
v) During the year the company has not entered into any transactions
that need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
vi) The company has not accepted any deposits from the public.
Accordingly, the provisions of clause 4(vi) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
vii) As per the information and explanations given to us by the
Management, the company's internal control procedure together with the
internal checks conducted by the Management staff during the year can
be considered as an internal audit system commensurate with the size
and nature of its business.
viii) According to the information and explanations given to us,
maintenance of cost records under section 209(l)(d) of the Companies
act, 1956 are not applicable to the activities carried on by the
company.
ix) a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues applicable to it.
b) According to the information and explanations given to us no
undisputed statutory dues applicable to it were outstanding as at 31st
March, 2014 for a period of more than six months from the date they
became payable.
c) According to the Information and explanations given to us, there are
no statutory dues which have not been deposited on account of any
dispute.
x) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has incurred cash loss
during the financial year covered by our audit and in the immediately
preceding financial year.
xi) The company does not have any dues payable to financial
institutions or banks or debenture holders. Accordingly, the provisions
Of clause 4(xi) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
xii) The company has not granted any loans and advances on the basts of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xiii) In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
Benefit Fund/ Society. Accordingly, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
xiv) In our opinion, the company is not dealing 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.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from Banks or Financial Institutions. Accordingly, the
provisions of clause 4(xv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
xvi) The company has not obtained any term loans from banks and
financial institutions during the year under audit. In our opinion and
according to the information and explanations given to us the term
loans obtained in the earlier years have been applied for the purpose
for which they were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that funds raised on short-term basis have not been used for long-term
Investment.
xviii) According to the Information and explanations given to us, the
company has not made any preferential allotment of shares to the
parties and companies covered in the register maintained U/Sec,301 of
the Companies Act, 1956. Accordingly, the provisions of clause 4(xviii)
of the Companies (Auditor's Report) Order are not applicable to the
company.
xix) The company has not Issued any debentures. Accordingly, the
provisions of clause 4(xix) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
xx) During the current financial year under review and in the
immediately preceding financial year the company has not raised any
money by way of public issue and there was no unutilized money raised
through public issues at the beginning of the period covered by the
audit report. Accordingly, the provisions of clause 4(xx) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For AMAR & RAJU
CHARTERED ACCOUNTANTS
Firm Registration No: 000092S
Place: Hyderabad (G. AMARANATHA REDDY)
Date: 30-05-2014 Partner
Membership No: 019711
|