To The Members of AGRIMONY COMMODITIES LIMITED
Report on the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of AGRIMONYCOMMODITIES
LIMITED ("the Company") which comprise the Balance Sheet as at March 312019 and the Statement of Profit and Lossand the Statement of Cash Flows for the yearended and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Accounting Standards prescribed under section 133 ofthe Act read with the Companies (Accounting Standards) Rules 2015 as amended and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2019 and its and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.
Key Audit matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Sr.No ||Key audit matter ||Auditor's response |
|1. ||Evaluation of uncertain tax positions ||Our audit procedures among other things included the following: |
| ||The company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. ||(a)Obtained details of completed tax assessments and demands during the year ended march 31 2019 from management. |
| ||Refer note no. 25 (A) in Significant accounting policy. ||(b) We involved our internal tax experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. |
| || ||(c)Our internal tax experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. |
| || ||(d) We considered the effect of new information in respect of uncertain tax positions as at 31st March 2019 to evaluate whether any change was required to management's position on these uncertainties. |
|2. ||Debtors and creditors ||We evaluated the company's policies processes and controls relating to the monitoring of trade receivables and trade payables and review of credit risks of customers. Our audit procedures included amongst others evaluating management's assessment of the credit review procedures of trade receivables and trade payables. |
| ||The balance of trade receivables as at 31 march 2019 amounted to Rs. 7.33 crore which forms a significant part i.e. 35% of the company's total assets. || |
| ||Refer Note11 to the financial statements. || |
| ||The balance of trade creditors as at 31 march 2019 amounted to Rs. 6.36 crore which forms a significant part i.e. 30.35% of the company's total liabilities. ||We also obtain confirmations of the trade receivables and trade payables. We have also analysed ageing of receivables assessment of material overdue individual trade receivables includingspecific customer. |
| ||Refer note 5 to the financial statements. || |
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance total income cash flows and changes in equityof the Company in accordance with the Accounting Standardsand other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(1)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("theorder") issued by the Central Government of India in term of sub- section (11) of thesection 143 of the Act we give in the Annexure A a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and the Statement of Cash Flowdealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards prescribed under section 133 of the Act read with Act read with Rule7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors of theCompany as on March 31 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2019 from being appointed as a director in termsof Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in"Annexure B". g) With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - refer note no.38 to the statements.
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) There has been no delay in transferring amounts required to be transfer to theinvestor Education and Protection Fund by the company.
For V.R.BHABHRA & CO.
(Firm's Registration No. 112861W)
(Membership No. 046043)
Date: 30th May 2019
Annexure A to the Independent Auditors' Report
(Referred to paragraph (9) under Report on other legal and regulatoryrequirements' of our report of even date to the member of AGRIMONY COMMODITIES LIMITED onthe financial statements for the year ended March31 2019)
i. In respect of Fixed Assets :
The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
ii. In respect of Inventories:
The Company is in the business of trading of commodities and does not hold anyinventory. Therefore the provision of Clause 3(ii) of the said Order are not applicableto the Company.
iii (a)The company has granted interest free loans to its wholly owned subsidiaryto the extent of Rs.2800000/-.
(b)In respect of aforesaid loan there are no schedule for repayment of interest hasbeen stipulated by the Company. Therefore in absence of stipulation of repayment term wedo not make any comment on the regularity on the repayment of principal and payment ofinterest.
(c)In respect of the aforesaid loan since no repayment period is specified and hencethere is no amount to be considered as overdue for more than ninety days.
iv. In our opinion and according to the information and explanation given to usthe company has complied with the provisions of Section 185 and 186 of the companies act2013 in respect of loan investments guarantees and security.
v. According to the information and explanations given to us the company has notaccepted any deposits from the public and hence the directives issued by the Reserve bankof India and the provisions of Section 73 to 76 or any other relevant provisions of theAct and Companies (Acceptance of deposit) Rule 2015 with regard to the deposits acceptedfrom the public are not applicable.
vi The company has not accepted any deposits from public within the meaning ofsection 737475 and 76 of the act and the rules framed there under to the extentnotified.
vii The Central Government of India has not specified the maintenance of costrecords under subsection (1) of Section 148 of the Act for any of the products of theCompany.
iii. In respect of statutory dues:
a. According to the information and Explanation given to us and records of the Companyas produced and examined by us in our opinion there have been some delays in depositingundisputed statutory dues in respect of Provident Fund Income-tax Sales-taxService-tax Excise Duty Goods and Services Taxcess and any other statutory dues withthe appropriate authorities.
b. As explained to us the Company did not have any statutory disputed amounts payablein respect of income tax Sales tax Service tax Goods & Services Tax Act and othermaterial statutory dues were in arrears as at 31st March 2019 for a period ofmore than six months from the date they became payable except matters mentioned below:
|Name of statute ||Nature of the Dues ||Amount (Rs.in lakhs) ||Pending before ||Nature of Dispute |
|Income Tax Act 1961 ||Income Tax ||11.97 ||Commissioner Appeals ||Dispute regarding admissibility of certain expenses for the AY 2015- 16. |
|Maharashtra Value Added Tax 2002 ||Value Added Tax ||95.18 ||Appeal yet to be filed and under progress. ||Dispute in relation to non acceptance of bills raised by one of the supplier during the year 2016-17.. |
ix. Based on our audit procedures and according to the information and explanationsprovided to us by the management we are of the opinion that the Company has not defaultedin repayment of dues to financial institution and bank.
ix. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.
x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.
xi. According to the information and explanation given to us and based on ourexamination of the records of the company the company has paid and provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovision of Section 197 read with schedule V to the act.
xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhicompany. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards and Companies Act 2013.
xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For V R BHABHRA & CO.
Vimal R. Bhabhra
Membership No: - 046043
Date: 30th May 2019
Annexure B to the Independent Auditors' Report
(Referred to in paragraph 5(f) of the Independent Auditors' Report of even date to themembers of AGRIMONY COMMODITIES LIMITED on the financial statements for the year endedMarch 31 2019)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013
We have audited the internal financial controls over financial reporting of AgrimonyCommodities Limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1)Pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) Provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) Provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For V R BHABHRA & CO.
Vimal R. Bhabhra
Membership No: - 046043
Date: 30th May 2019