Report on the Audited Financial Statements
To the Members of Acewin Agriteck Limited
(Formerly known as OFS Technologies Limited)
QUALIFIED OPINION
We have audited the accompanying financial statements of Acewin Agriteck Limited
(formerly known as OFS Technologies Limited) ("the Company"), which comprise the
Balance Sheet as at March 31, 2020, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows
for the year ended on that date, and a summary of the significant accounting policies and
other explanatory information (hereinafter referred to as "the financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, except for the effects of the matter described in the Basis for Qualified
Opinion paragraph, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards prescribed under section 133
of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
("Ind AS") and other accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2020, the profit and total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
No Provision has been considered in books for the Sundry Debtors amounting to Rs.
11,05,35,700/- stands outstanding for a period of more than one year. The Management is of
Opinion that these Sundry Debtors are good and Realizable.
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors Responsibilities for the Audit of
the Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (ICAI) together with the independence requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the Rules made there under,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion on the
financial statements.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance, total comprehensive
income, changes in equity and cash flows of the Company in accordance with the Ind AS 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 financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys abilityto 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 doso.
Those Board of Directors are responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
? Obtain an understanding of internal financial controls relevant to the audit in order
to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
? Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
? Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
? Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
? Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give
in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable
1. 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 including Other Comprehensive
Income, Statement of
Changes in Equity 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 financial statements comply with the Ind AS specified
under Section 133 of the
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 March 31, 2020taken on record by
the Board of Directors, none of the directors is disqualified as on March 31, 2020from
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 A". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g. With respect to the other matters to be included the Auditors Report in accordance
with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h. 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 does not have any pending litigations which would impact its financial
position. ii. The company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses.
iii. No amounts were required to be transferred, to the Investor Education and
Protection Fund by the
Company
2. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
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For Venkatesh & Co., |
|
Chartered Accountants |
|
F.R No 004636S |
|
CA Dasaraty V |
|
M No 026336 |
|
Partner |
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UDIN: 2026336AAAACE7754 |
| Place: Chennai |
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| Date: 01/06/2020 |
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ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report to the Members of Acewin Agriteck Limited (formerly
known as OFS Technologies Limited) of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Acewin
Agriteck Limited (formerly known as OFS Technologies Limited) ("the Company") as
of March 31, 2020 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 Board of Directors of the Company 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. 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 respective 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 Companies Act, 2013.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company 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") issued by
the Institute of Chartered
Accountants of India and the Standards on Auditing prescribed under Section 143(10) of
the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls. 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 judgments, 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 internal financial controls system over
financial reporting of the Company.
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 financial statements.
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, to the best of our information and according to the explanations given
to us, 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, 2019, 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.
|
For Venkatesh & Co., |
|
Chartered Accountants |
|
F.R No 004636S |
|
CA Dasaraty V |
|
M No 026336 |
|
Partner |
|
UDIN: 2026336AAAACE7754 |
| Place: Chennai |
|
| Date: 01/06/2020 |
|
ANNEXURE B TO THE AUDITORS REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory
Requirements section of our report to the Members of Acewin Agriteck Limited
(formerly known as OFS Technologies Limited) of even date)
i. In respect of the Companys fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) As explained to us, all the fixed assets have been physically verified by the
management during the year, which in our opinion is reasonable, having regard to the size
of the company and the nature of its assets. No material discrepancies were noticed on
such physical verification.
(c) As per information provided to us, there are no immovable properties held in the
name of the company hence clause (c) is not applicable.
ii. In our opinion and according to information provided to us, the inventories have
been physically verified during the year by the Management and no material discrepancies
were not noticed during the physical verification.
iii. The Company has not granted loans to the parties covered in the register
maintained under section 189 of the Companies act of 2013:
(a) In the light of above we do not comment on the interest or other conditions or
security of loans. (b) In the light of above we do not comment on the Payment of principal
or interest.
iv. In our opinion and according to the information and explanations given to us, the
Company has not made any grant of loans, making investments and providing guarantees and
securities as per the provisions of Sections 185 and 186 of the Act, Hence reporting under
this clause is not applicable.
v. The Company has not accepted deposits during the year and does not have any
unclaimed deposits as at March 31, 2019 and therefore, the provisions of the clause 3 (v)
of the Order are not applicable to the Company.
vi. The maintenance of cost records has not been specified by the Central Government
under section 148(1) of the Companies Act, 2013 for the business activities carried out by
the Company. Thus reporting under clause 3(vi) of the order is not applicable to the
Company.
vii. According to the information and explanations given to us, in respect of statutory
dues:
(a) The Company has been regular in depositing undisputed statutory dues, including
Provident Fund, Employees State Insurance, Income Tax, Goods and Service Tax, and other
material statutory dues applicable to it with the appropriate authorities. (b) According
to the records of the Company and according to the information and explanations given to
us, there are no dues of Income tax and Goods and Service Tax.
viii. The Company has obtained borrowings from financial institutions and banks
amounting to Rs. 3.14 Crores. Based on the information and explanation given to us there
is no default in repayment of dues to financial institutions and banks.
ix. The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) or term loans and hence reporting under clause 3 (ix)
of the Order is not applicable to the Company. x. We had not noticed any fraud by the
company or any fraud on the Company by its officers or employees to be reported during the
year.
xi. In our opinion and according to the information and explanations given to us, the
Company has paid/provided managerial remuneration in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the
Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the
Company is in compliance with Section 188 of the Companies Act, 2013 where applicable, for
all transactions with the related parties and the details of related party transactions
have been disclosed in the financial statements as required by the applicable accounting
standards. The provisions of Section 177 are complied by the company.
xiv. During the year, the Company has not made any preferential allotment or private
placement of shares or fully or partly paid convertible debentures and hence reporting
under clause 3 (xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
Directors or persons connected to its directors and hence provisions of section 192 of the
Companies Act, 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
|
For Venkatesh & Co., |
|
Chartered Accountants |
|
F.R No 004636S |
|
CA Dasaraty V |
|
M No 026336 |
|
Partner |
|
UDIN: 2026336AAAACE7754 |
| Place: Chennai |
|
| Date: 01/06/2020 |
|
+91-9892691696
