Independent Auditors Report
TO THE MEMBERS OF, Agrimony Commodities Limited,
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of AGRIMONY
COMMODITIES LIMITED ("the Company"),Which Comprise the Balance Sheet as at
31st March, 2021 and the Statement of Profit and Loss, the Cash Flow Statement for the
year ended and a summary of significant accounting policies and other explanatory
information.
Managements Responsibility for the Standalone Financial Statements
The Companys Management and Board of Directors are responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of these standalone financial statements that give a true and fair view of the
financial position, financial performance total income, cash flows and changes in equity
of the Company in accordance with the Accounting Standards and other accounting principles
generally accepted in India. This responsibility also includes maintenance 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 irregularities;
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 standalone financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. While conducting the audit, we have taken into account the provisions of the Act,
the accounting and auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act and other applicable pronouncements 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
the disclosures in the financial statements. The procedures selected depend on the
auditors 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 financial control relevant to the Companys preparation of the
financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by the Companys Board of Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by
the other auditor in terms of their reports referred to in Other Matters paragraph below,
is sufficient and appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, based on the consideration of the reports of the other auditor on the
financial statements/financial information of its subsidiary as noted below, 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, of the consolidated state of affairs of the Company, including its subsidiary as at
31st March, 2021 and their profit and their cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
2. As required by ‘the Companies (Auditors Report) Order, 2016 ("the
order") issued by the Central Government of India in term of sub- section (11) of the
section 143 of the Act, we give in the Annexure A, a statement on the matters
specified 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 best
of 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 the
Company 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 Flow
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Standalone financial statements comply with the
Accounting Standards prescribed under section 133 of the Act read with Act, read with Rule
7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st
March,
2021 taken on record by the Board of Directors, none of the directors is disquali ed as
on
31 March, 2021, from being appointed as a director in terms of Section 164(2) of the
Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in
our opinion and to the best of our information and according to the explanations given to
us:
i) The Company has no pending litigations as at March 2021.
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses. iii) There has been no delay in
transferring amounts required to be transfer to the Investor Education and Protection Fund
by the Company.
Annexure A to the Independent Auditors Report
(Referred to paragraph (9) under ‘Report on other legal and regulatory
requirements of our report of even date to the member of AGRIMONY COMMODITIES LIMITED on
the financial statements for the year ended March31, 2021)
i. In respect of Fixed Assets :
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 have been physically verified by the Management
during the year and no material discrepancies have been noticed on such verification. In
our opinion, the frequency of verification is reasonable.
ii In respect of Inventories:
The Company is in the business of trading of commodities and does not hold any
inventory. Therefore, the provisions of Clause 3(ii) of the said Order are not applicable
to the Company.
iii (a)The company has granted interest free loans to its wholly owned subsidiary
to the extent of Rs.34,40,000.
(b)In respect of aforesaid loan, there are no schedule for repayment of interest has
been stipulated by the Company. Therefore, in absence of stipulation of repayment term we
do not make any comment on the regularity on the repayment of principal and payment of
interest.
(c) In respect of the aforesaid loan, since no repayment period is specified and hence
there 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 us,
the company has complied with the provisions of Section 185 and 186 of the companies act,
2013 in respect of loan, investments, guarantees and security.
v. According to the information and explanations given to us, the company has not
accepted any deposits from the public and hence the directives issued by the Reserve bank
of India and the provisions of Section 73 to 76 or any other relevant provisions of the
Act and Companies (Acceptance of deposit) Rule 2015 with regard to the deposits accepted
from the public are not applicable.
vi. The company has not accepted any deposits from public within the meaning of
section
73,74,75 and 76 of the act and the rules framed there under to the extent notified.
vii. The Central Government of India has not specified the maintenance of cost
records under sub-section (1) of Section 148 of the Act for any of the products of the
Company.
Viii. In respect of statutory dues:
a) According to the information and Explanation given to us and records of the Company
as produced and examined by us, in our opinion, the company is regular in depositing the
undisputed statutory dues in respect of Income-tax, Goods & Services Tax Act, cess and
any other material statutory dues as applicable with the appropriate authorities.
b) As explained to us, the Company did not have any statutory disputed amounts payable
in respect of Income-tax, Sales-tax, Goods & Services Tax Act, and other material
statutory dues were in arrears as at 31st March 2021 for a period of more than six months
from the date they became payable.
ix. Based on our audit procedures and according to the information and explanations
provided to us by the management, we are of the opinion that the Company has not defaulted
in repayment of dues to financial institution and bank.
x. Based upon the audit procedures performed and the information and explanations
given by the management, the company has not raised moneys by way of initial public offer
or further public offer including debt instruments and term Loans. Accordingly, the
provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not
commented upon.
xi. During, the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud by the company or on the company by its officers or employees,
noticed or reported during the year, nor have we been informed of any such case by the
management.
xii. According to the information and explanation given to us and based on our
examination of the records of the company, the company has paid and provided for
managerial remuneration in accordance with the requisite approvals mandated by the
provision of Section 197 read with schedule V to the act.
xiii. In our opinion and according to the information and explanations given to us,
the
Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable. xiv. According to the information and explanations given to us and
based on our examination of the records of the Company, transactions with the related
parties are in compliance with sections 177 and 188 of the Act where applicable and
details of such transactions have been disclosed in the financial statements as required
by the applicable accounting standards and Companies Act, 2013.
xv. According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year.
xvi. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable.
xvii. The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act 1934.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 5(f) of the Independent Auditors Report of even date to the
members of AGRIMONY COMMODITIES LIMITED on the financial statements for the year
ended March 31, 2021)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting ofAgrimony
Commodities Limited ("the Company") as of March 31, 2021 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the
"Guidance Note") and the Standards on Auditing deemed to be prescribed under
section
143(10) of the Act to the extent applicable to an audit of internal financial controls,
both applicable to an audit of internal financial controls and both issued by the ICAI.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1)Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2021, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
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