AGRO TECH FOODS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO
THE MEMBERS OF
AGRO TECH FOODS LIMITED
1. We have audited the attached Balance Sheet of Agro Tech Foods Limited
("the Company") as at 31 March 2012, the Statement of Profit and Loss and
the Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of the
Company`s management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003 (`the
Order`), as amended, issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in
the Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) 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;
(ii) 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;
(iii) 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;
(iv) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the Companies
Act, 1956, to the extent applicable;
(v) on the basis of written representations received from the directors, as
on 31 March 2012, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31 March 2012 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956; and
(vi) in our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, 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 31 March 2012;
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 Cash Flow Statement, of the cash flows of the Company for
the year ended on that date.
For B S R and Co
Chartered Accountants
Firm Registration No. 128510W
Zubin Shekary
Partner
Membership No. 48814
Place : Gurgaon
Date : 26 April 2012
ANNEXURE TO THE AUDITORS` REPORT
The Annexure referred to in the auditors` report to the members of Agro
Tech Foods Limited ("the Company") for the year ended 31 March 2012. We
report that:
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed
assets by which all fixed assets are verified every year. In our opinion,
the periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets. No material discrepancies
were noted on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) (a) The inventories, except goods-in-transit and stocks lying with
third parties, have been physically verified by the management during the
year. In our opinion, the frequency of such verification is reasonable. For
stocks lying with third parties at the year-end, written confirmations have
been obtained.
(b) In our opinion, the procedures for the physical verification of
inventories 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. The
discrepancies noticed on verification between the physical stocks and the
book records were not material.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given
to us, and having regard to the explanation that purchases of certain items
of inventories are for the Company`s specialised requirements and suitable
alternative sources are not available to obtain 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 purchase of
inventories and fixed assets and with regard to the sale of goods and
services. In our opinion and according to the information and explanations
given to us, there is no continuing failure to correct major weaknesses in
internal control system. We have not observed any major weakness in the
internal control system during the course of the audit.
(v) In our opinion, and according to the information and explanations given
to us, there are no contracts and arrangements the particulars of which
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.
(vii) In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1)(d) of the Companies Act,
1956 and are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a detailed
examination of the records.
(ix) (a) According to the information and explanations given to us
and on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Employees` state insurance,
Income-tax, Sales-tax, Wealth tax, Service tax, Customs duty, Excise duty
and other material statutory dues have been regularly deposited during the
year by the Company with the appropriate authorities. As explained to us,
the Company did not have any dues on account of investor education and
protection fund.
Name of the Statute A B C
&Nature of Dues
Central Excise Act, 1944
& Excise Duty -CENVAT
credit 0.78 2004 - 2005 Central Excise and
Service Tax
Appellate
Tribunal
Andhra Pradesh General
Sales Tax Act, 1956
&Sales Tax 0.10 1997 - 1998 Sales Tax Appellate
Tribunal
1.80 2001- 2002 Sales Tax
Appellate Tribunal
1.98 2002- 2003 Appellate Deputy
Commissioner,
Commercial Taxes
Andhra Pradesh Entry
Tax Act, 2001
& Entry Tax 1.17 2005 - 2006 Deputy Commissioner
(Appeals),Commercial
Taxes
Andhra Pradesh Value
Tax Act, 2005
&Added Value Added
Tax 18.11 2007- 2008 Deputy Commercial
Tax Officer
Andhra Pradesh Value
Added Tax Act, 2005
&Value Added Tax 7.52 April 2008 Deputy Commercial
to July Tax Officer
Tamil Nadu Sales Tax
Act, 1959 &Sales Tax 0.26 2002 -2003 Assistant
Commissioner,
Commercial Taxes
2.23 2003-2004 Assistant
Commissioner (CT),
Chennai
West Bengal Sales Tax Act,
1994 &Sales Tax 0.72 2001-2002 Sales Tax Appellate
Tribunal
Bihar Sales Tax Act, 1981
&Sales Tax 0.62 2001- 2002 Sales Tax Appellate
Tribunal
2.26 2002-2003 Joint Commissioner,
Delhi Sales Tax Act, 1975
&Sales Tax 0.95 2003 -2004 Additional
Commissioner,
Commercial Taxes
1.34 2004 -2005 Additional
Commissioner,
Commercial Taxes
Uttar Pradesh Sales
Tax Act, 1948 and
Central Sales Tax
Act, 1956 &Sales Tax and
CST 0.85 2003-2004 Deputy Commissioner
(Appeals),Commercial
Taxes
359.55 2005-2006 Deputy Commissioner,
Commercial Taxes
251.45 2006-2007 Deputy Commissioner,
Commercial Taxes
0.10 2009-2010 Additional
Commissioner
(Appeals)
0.10 2009- 2010 Additional
Commissioner
(Appeals)
Uttar Pradesh Value
Added Tax, 2008
&Value Added Tax 63.53 2007-2008 Deputy
Commissioner,
Commercial Taxes
Uttrakhand Value Added Tax,
2005 &Value Added Tax 7.24 2005- 2006 Deputy Commissioner,
Commercial Taxes
Rajasthan Sales Tax Act, 1954
&Sales Tax 0.30 2001- 2002 High Court, Jodhpur
Bombay Sales Tax Act, 1958
&Sales Tax 0.19 1997 - 1998 Sales Tax Appellate
Tribunal
0.63 2002- 2003 Joint Commissioner
of Sales Tax
(Appeals)
Gujarat Sales Tax Act, 1970
&Sales Tax 0.22 1998 - 1999 Sales Tax Appellate
Tribunal
0.12 1999 - 2000 Sales Tax Appellate
Tribunal
A=Amount INR Millions*
B=Period to which the amount relates
C=Forum where the dispute is pending
*Net of deposits
(xi) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial 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 repayment of dues to its
bankers. The Company did not have any outstanding dues to any financial
institution or debenture holders during the year.
(xiii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/ mutual benefit
fund/ society.
(xv) According to the information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments.
(xvi) 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.
(xvii) The Company did not have any term loans outstanding during the year.
(xviii) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the funds raised on short-term basis have not been used for
long-term investment.
(xix) The Company has not made any preferential allotment of shares to
companies/firms/parties covered in the register maintained under Section
301 of the Companies Act, 1956.
(xx) The Company did not have any outstanding debentures during the year.
(xxi) The Company has not raised any money by public issues.
(xxii) 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 B S R and Co
Chartered Accountants
Firm Registration No. 128510W
Zubin Shekary
Partner
Membership No. 48814
Place : Gurgaon
Date : 26 April 2012 |