| We have audited the accompanying financial statements of ASIAN VEGPRO
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2014 and the Statement of Profit and Loss for the year
then ended and a summary of significant accounting policies and other
explanatory information. Management's Responsibility for the Financial
Statements Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit We conducted our audit in accordance with
the Standards on Auditing issued 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 disclosures in the
financial statements. The procedures selected depend on the auditor's
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 control relevant
to the Company's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity's internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, 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:
(i) in case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014.
(ii) in case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors' Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said order.
As required by section 227(3) of the Act, we report that:
(a) we have obtained all the information and explanation, which to the
best of our knowledge and 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 and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
(e) on the basis of written representations received from the
Directors, as on the date of balance sheet, and taken on record by the
board of directors, we report that none of the directors is
disqualified as on the said date from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956;
(1) since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company;
ANNEXURE REFERRED TO IN REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS OF OUR REPORT OF EVEN DATE
(i) (a) The Company is maintaining proper records showing full
particulars of, including quantitative details and situation, of fixed
assets.
(b) The management at reasonable intervals has verified the fixed
assets. We have been informed that, no material discrepancies on such
verification have been noticed.
(c) The Company has not disposed substantial portion of its fixed
assets during the year; accordingly the going concern status of the
Company is not affected.
(ii) (a) As per the records maintained, the management has conducted
verification of inventory at reasonable intervals.
(b) In our view, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our view, the Company has maintained proper records of
inventory. No material discrepancies have been noticed on physical
verification of stocks as compared to the book records.
(iii) (a) The Company has not granted any loans, secured or unsecured
to companies, firms or other parties covered in the register maintained
under section 301 of the Ad
(b) Since no loans are granted, the sub-clause dealing with rate of
interest and other terms and conditions of loans given by the Company
are not applicable.
(c) Since no loans are granted, the sub-clause dealing with receipt of
the principal amount and interest on regular basis is not applicable.
(d) Since no loans are granted, the sub-clause dealing with overdue
amount more than rupees one lakh is not applicable.
(e) The Company has taken interest free unsecured loan from one party
covered in the register maintained under section 301 of the Ad The
amount involved in the transactions during the year on maximum basis
was Rs. 37,33,186 and at end of the year Rs. 37,30,132.
(f) Other terms and conditions of unsecured loans taken by the Company,
are prima facie not prejudicial to the interest of the Company.
(g) The repayment of the principal amount and interest whereever
applicable of such loans are also regular.
(iv) In our view, there is an adequate internal control system
commensurate with the size of the Company and nature of its business,
for the purchase of inventory and fixed assets, and for sale of goods
and services. In our view, there has been no continuing failure to
correct major weakness in internal control systems of the Company.
(v) According to the information and explanation given to us, and on
the basis of representation received from the Management, the
transactions that need to be entered into register maintained under
section 301 of the Companies Ad 1956 have been so entered and the
transactions made in pursuance of such Contracts or arrangements have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from public within the
meaning of the provisions of section 58A and section 58AA or any other
provisions of the Companies Ad 1956 and the rules made there under. We
have been informed by the management that there has been no order
passed by the Company law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal on the Company
with respect to compliance of the provisions of section 58A or 58AA or
any other provisions of the Companies Act, 1956.
(vii) Since the paid-up capital and reserves of the Company were not
exceeding Rs. 50 Lacs at the commencement of the financial year, and
the Company did not have an average annual turnover exceeding five
Crore rupees for a period of three consecutive financial years
immediately preceding the financial year concerned, there was no
obligation for the Company as to have an internal audit system that
commensurate with its size and nature of its business.
(viii) We have been informed by the management that, the Central
Government has not prescribed the method of maintenance of cost records
u/s. 209 (1) (d) of the Companies Act, 1956 to the industry to which
the Company pertains.
(ix) (a) We have been informed by the management that, the Company is
generally regular in depositing undisputed statutory dues with the
appropriate authorities and there have been no material arrears of
outstanding dues as at the last day of this financial year for more
than six months from the date they became payable except advance tax
that has not been regularly paid by the Company.
(b) In our opinion and according to the information and explanation
given to us, there are no dues of Income tax. Sales tax, Wealth Tax,
and Service tax. Custom Duty, Excise Duty or Cess, as applicable to it
which have not been deposited on account of any dispute.
(x) There are no accumulated losses at the end of the financial year.
Also, the Company has not reported any cash losses during the year or
immediately preceding financial year.
(xi) As informed to us by the management, the Company has not defaulted
in repayment of any dues to financial institution or banks; whereas
there are no debenture holders
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
accordingly, there is no necessity as to maintaining documents and
records in this respect
(xiii) The provisions erf any special statute in respect of chit fund,
nidhi, mutual benefit funds or societies are not applicable to the
Company.
(xiv) The Company has not dealt or traded in shares, securities,
debentures and other investments; hence maintenance of records for the
same does not arise.
(xv) The management has informed us that the Company has not given any
guarantee for loans taken by others from any bank or financial
institutions.
(xvi) As per the explanation given by the management, the term loans
were applied for the purposes for which they were obtained.
(xvii) As explained to us by the management there were no funds that
were raised on a short term basis, which have been applied for
long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act 1956.
(xix) The Company has not issued any debentures; hence no security or
charges have been created in respect of the same.
(xx) The Company has not made any public issues of shares during the
relevant year; hence disclosure requirement as to end utilization of
public issue money is not required.
(xxi) As informed by the management, there has not been noticed or
reported any fraud on or by the Company during the year.
For Shah, Shah & Shah
Chartered Accountants
502, Damji Shamji Trade Centre Firm Registration No. 116457W
Station Road. Vidyavihar (W) MEHULSHAH
Mumbai - 400 086 Partner
Date : the 30th day of May, 2014 Membership No. 049361
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