We have audited the accompanying financial statements of MADHYA BHARAT AGRO PRODUCTSLIMITED which comprise the Balance Sheet as at 31st March 2017 and theStatement of Profit and Loss and Cash Flow Statement for the year ended and a summary ofsignificant accounting policies and other explanatory information.
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act2013 with respect to the preparation of these financial statements thatgive a true and fair view of the financial position financial performance and cash flowsof the Company in accordance with the Accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules2014.This responsibility also includes the maintenanceof adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenances of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the financial statements.
a) In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017.
c) The Balance Sheet the Statement of Profit and Loss dealt with by this Report are inagreement with the books of account.
d) In our opinion the aforesaid financial statement comply with the AccountingStandards specified under Section 133 of the Act read with rule 7 of the Companies(Accounts) Rules2014.
e) On the basis of written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof section 164(2) of the Act.
iv. The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company.
v. vi. The company did not hold as well as deal in any Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the company.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the Order.
Annexure referred to in Point 2 of the Auditor's Report of even date to the members ofMadhya Bharat Agro Products Limited for the year ended 31st March 2017.
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) As per the information and explanation given to us fixed assets have beenphysically verified by the management at reasonable intervals; no material discrepancieswere noticed on such verification.
(c) As per the information given to us the title deeds of the immovable properties areheld in the name of the company.
(ii) As per the information and explanation given to us the inventories have beenphysically verified during the yearby the management at reasonable intervals. No materialdiscrepancy was noticed on such verification.
(iii) As per the information and explanation given to us and on the basis of ourexamination of the books of account the company has not granted loans to any partiescovered in the register maintained under section 189 of the Companies Act 2013. Thusclause iii (a) iii (b) iii (c) are not applicable.
(iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security the provisions of section 185 andI86 of the Companies Act 2013 has been complied with by the company.
(v) In our opinion and as per the information and explanations given to us and on thebasis of our examination of the books of account the company has not accepted anydeposits covered under section 73 of the Companies Act 2013.
(vi) As per information & explanation given by the management maintenance of costrecords has been prescribed by the Central Government under sub-section (1) of section 148of the Companies Act 2013 and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.
(vii) (a) According to the information and explanations given to us and the recordsexamined by us the company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax wealth-taxservice tax duty of custom duty of excise value added tax cess and any other statutorydues with appropriate authorities wherever applicable. According to the information andexplanations given to us no undisputed arrears of statutory dues were outstanding as at31st March 2017 for a period of more than 6 months from the date they became due.
(viii) Based on our audit procedures and the information and explanations given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto financial institutions or banks or government. There are no debenture holders of thecompany.
(ix) According to the record of the company no money has been raised by way of initialpublic offer or further public offer but Company has been made offer for sale by way ofinitial public offer. Further company raised money of Rs. 25.00 Crores by way of termloan. The loan has been utilized for the purpose for which it has been sanctioned.
(x) Based on our audit procedures performed and on the information and explanationsgiven to us we have neither came across any instances of fraud on or by the companynoticed or reported during the year nor we have been informed for such case by themanagement.
(xi) According to the records of the company and on the basis of information andexplanation given to us we are of the opinion that the managerial remuneration has beenpaid or provided in accordance with the requisite approvals mandated by the provision ofsection 197 read with schedule V to the Companies Act.
Report) order 2016 is not applicable to the Company.
(xiii) In our opinion and according to the record of the company all transactions withthe related parties are in compliance with section 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.
(xiv) According to the record of the company the company has not made any preferentialallotment or fully or partly convertibles debentures during the year. Company has madeprivate placements of shares during the year in compliance of section 42 of Companies Act2013 and amount raised has been utilized for the purpose for which it has been raised.
(xv) According to the information and explanations given to us and the records examinedby us the company has not entered into any non-cash transactions with directors or personsconnected with him.
(xvi) According to the record of the company the company is not required to beregistered under section 45 IA of the Reserve Bank of India Act 1934.