| We have audited the accompanying Financial Statements of Asian
Fertilizers Limited ("The Company"), which comprise the Balance Sheet
as at 31st March, 2015, the statement of Profit and Loss and Cash Flow
Statement for the year then ended, and the summary of significant
accounting policies and other explenetory information.
Mangements Responsibility for the Financial Statments
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Compaines Act, 2013 ("The Act") with respect
to 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 principles
generally accepted in Indian, including a the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintainance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregualarities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statments based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standrds and matters which are required to be included in
the audit report under the provisions of the Act and Rules made there
under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. Those Standards require
that we comply with ethical requirments and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from mateial misstatement.
An audit involves performing procedure to obtain audit evidence about
the amount and disclosures in the financial statments. The procedure
selected depend on the auditors judgment, including the assesment of
the risk of material misstatement of the financial statements, whether
due to fraud or error. In making those risks assesments, the auditor
considers internal control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit procidures that are appropriate in the circumstances but not the
purpose of expressing an opinion on whether the company has in place an
adequate internal financial controls system over financial reporting
and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by Company's
Directors, as well as evaluating the over all presentation of financial
statement.2
We believe that audit evidence we have obtained is sufficiant and
appropriate to provide a basis for our audit opinion on the financial
statements.
Basis of Qualified Opinion
No provision for Exice Duty on closing stock of finished goods has been
made in the accounts as well as same has not been included in value of
Inventories. The above accounting treatment is not in confirmity with
the Accounting Standard 2 (Inventory Valuation) issued by the Institute
of Chartered Accountants of India. However it has no effect on profit
for the year.
Few balances of debtors, creditors, advances, loans, security deposits
and other parties are subject to confirmation/reconciliation the impact
whereof on the accounts is not ascertainable, {refer Note No. 37}
The cumulative effect of the above is not ascertainable at this stage.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects for the matter
described in the Basis for Qualified Opinion paragraph, the aforesaid
financial statements give the information required by the Act in the
manner so required and give a true and fair view confirmity 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 31,2015;
b) In the case of Statement of Profit and Loss, of the profit for year
ended on that date; and
c) In the case of 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 (Auditors Report) Order, 2015 ("the
order") issued by the central Government of India in terms of sub
section (11) of Section 143 of the Act, and on the basis of such checks
of the books and records of the company as we considered appropriate
and according to information and explanations given to us, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order.
2. As required by the Section 143 (3) of the Act we report that:
a) We have sought and obtained all the information and explainations
which to the best of our knowledgeand 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, the statement of Profit & Loss and Cash and the
Cash Flow Statement dealt with by this Report are in agreement with the
books of account;
d) Except for the effects of the matter described in Basis for
Qualified Opinion paragraph, the aforesaid financial statement comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 1 of the Companies (Accounts) Rules, 2014
e) On the basis of written representations received from the directors,
as on 31st March, 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31stMarch, 2015 from being
appointed as a director in terms of Section 164 (2) of the Act,
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2015, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note no. 34.1 to
the financial statements;
ii) In our opinion and as per the information and explanations provided
to us, the company has not entered into any long term contracts
including derivative contracts, requiring provision under applicable
laws or accounting standards, for material foreseeable losses; and
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Educattion and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 1 of our report of even date on the financial
statements for the financial year ended 31 st March, 2015 to the
members of Asian Fertilizers Limited)
In terms of the information and explanations given to us and also on
the basis of such checks as we considered appropriate, we state that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets of the company are physically verified in a phased
manner, over a period of two years so as to cover all the fixed assets.
In our opinion, the frequency of physical verification of fixed assets
is reasonable, having regard to the size of the company and nature of
its assets. No material discrepancies between book records and the
physical inventory were noticed.
(ii) (a) The inventories of the Company has been physically verified by
the management during the year except material lying with the third
parties. In our opinion, the frequency of such verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management were 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 inventories. As
explained to us, the discrepancies noticed on verification were not
material in releation to the operations of the Company.
(iii) The Company has not granted any loan, secured or unsecured, to
companies firms or other parties listed in the register maintained
under Section 189 of the Companies Act, 2013.
(iv) In our opinion, there is adequate internal control system
commensurate with the size of the Company and nature of its business
for the purchase of inventory, fixed assets and for the sale of goods
and services. Further, on fire basis of our examination and according
to the information and explanations given to us we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
(v) In our opinion, the Company has not accepted any deposit during the
year within the meaning of Section 73 to Section 76 of the Companies
Act, 2013 read with the Rules framed there under.
(vi) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the Rules framed by the Central
Government for the maintenance of cost records under sub-section (1) of
Scection 148 of the Companies Act, 2013 and are of the opinion that,
prima facie, the prescribed records have been made and maintained. We
have not, however, made a detailed examination of he said accounts and
records with a view to determine whether they are accurate or complete.
(vii) (a) According to the books and records produced and examined by
us, the Company is generally regular in deposting undisputed Statutory
dues including Provident Fund, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and
other material statutory dues as applicable with the appropriate
authorities and no undisputed amount payable in respect of aforesaid
statutory dues were outstanding as at 31 st March 2015 for a period of
more than six months from the date they become payable.
b) According to the information and explainations given to us, there
are no dues of Income Tax, Sales Tax, Wealth Taxi, Duty of Coustoms,
Duty of Excise, Value Added Tax and Cess and which have not been
deposited on account of any dispute, except mentioned as below.
Name of the Nature of the Amount Year to Which
Statute dues (Rs. in Lacs) relates
The Central Excise Penalty 5.00 2003-04
Act, 1944
Name of the Forum where
Statute pending
The Central Excise CESTAT
Act, 1944 New Delhi
c) According to the information and explanations given to us, there are
no amounts that required to be transferred to investors Education and
Protection Fund during the year in accordance with the relevant
provisions of the Companies Act 1956.
(viii) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year as well as in the immediately preceding financial year.
(ix) According to the information and explanation given to us and based
on the documents and records produced to us, the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders during the year.
(x) The company has not given any guarantees for loans taken by others
from banks or financial intitution
(xi) In our opinion, the term loans have been applied for the purposes
for which they were obtained.
(xii) Based on the audit procedures performed and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year.
For KAPOOR TANDON & CO.,
Chartered Accountants
Firm Reg. No. - 000952 C
(R. P. Gupta)
Camp: Gorakhpur Partner
Date : 29.05.2015 M.No. 070904
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