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Updated:23 Aug, 2019, 15:59 PM IST

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Updated:23 Aug, 2019, 16:01 PM IST

Disclosure in auditor’s report explanatory

TO THE MEMBERS OF GODREJ AGROVET LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Godrej Agrovet Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and the Cash Flow Statement of the Company 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, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 (“the Act”) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. 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:

a. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b. in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Emphasis of Matter

a. We draw attention to Note 38 of the Notes to the Financial Statements wherein the Honorable High Court of Judicature at Bombay has approved a Scheme of Arrangement whereby the assets and liabilities of the transferor company (Goldmuhor Agrochem & Feeds Limited) have been taken over and recorded at their book values as on October 01, 2013.

i. In accordance with the Scheme of Arrangement an amount of Rs. 71.11 Lac on account of Goodwill on Merger has been charged to the General Reserve Account instead of amortising the same in the Statement of Profit & Loss over a period of ten years. Had the scheme not prescribed this treatment, the profit for the year would have been lower by Rs. 3.55 Lac, the Goodwill would have been higher by Rs. 67.56 Lac (net written down value) and the General Reserve would have been higher by Rs. 71.11 Lac.

ii. The cost and expenses arising out of or incurred in carrying out and implementing the scheme amounting to Rs. 40.72 Lac have been directly charged against the balance in the General Reserve Account of the Company. Had this amount been charged to the Statement of Profit and Loss, the profit for the year would have been lower and the General Reserve Account would have been higher by Rs. 40.72 Lac.

iii. An amount of Rs. 2,000.00 Lac has been transferred from the General Reserve Account and used to increase the Reserve for Employee Compensation Expenses. Had the scheme not prescribed this treatment the balance in the General Reserve Account would have been higher and the balance in the Reserve for Employee Compensation Expenses would have been lower by Rs. 2,000.00 Lac

b. We draw attention to Note 39 of the Notes to the Financial Statements wherein the Honorable High Court of Judicature at Bombay has approved as Scheme of Arrangement whereby the assets and liabilities of the transferor company (Golden Feed Products Limited) have been taken over and recorded at their book values as on March 31, 2014.

i. In accordance with the Scheme of Arrangement an amount of Rs. 97.06 Lac on account of Goodwill on Merger has been charged against the balance in the Surplus in Statement of Profit and Loss instead of amortising the same in the Statement of Profit and Loss over a period of ten years. Had the scheme not prescribed this treatment, the Goodwill and the Surplus in the Statement of Profit and Loss would have been higher by Rs. 97.06 Lac.

ii. An Amount of Rs. 3,505.85 Lac from the Surplus in Statement of Profit and Loss has been utilised to restate/revise value of certain assets of the Company. Had this amount been charged to the Statement of Profit and Loss, the profit for the year would have been lower and the Surplus in Statement of Profit and Loss would have been higher by Rs. 3,505.85 Lac

iii. The cost and expenses arising out of or incurred in carrying out and implementing the scheme amounting to Rs. 13.53 Lac have been directly charged against the balance in Surplus in Statement of Profit and Loss of the Company. Had this amount been charged to the Statement of Profit and Loss, the profit for the year would have been lower and the Surplus in Statement of Profit and Loss would have been higher by Rs. 13.53 Lac.

c. We draw attention to Note 40 of the Notes to the Financial Statements wherein the Honorable High Court of the Judicature at Bombay has approved a Scheme of Arrangement whereby the assets and liabilities of the transferor companies (Godrej Oil Palm Limited, Godrej Gokarna Oil Palm Limited and Cauvery Palm Oil Limited) have been taken over and recorded at their book values as on April 1, 2011.

i. Amortisation amounting to Rs 425.12 Lac on Intangible Assets taken over as per the Scheme is charged against the balance in the General Reserve Account of the Company in the current year and Rs. 850.24 in the previous years. Had this amount been charged to the Statement of Profit and Loss, the profit for the year would have been lower by Rs. 425.12 Lac, the opening balance in the Surplus in statement of Profit and Loss would have been lower by Rs. 850.24 Lac and the balance in the general reserve would have been higher by Rs. 1,275.36 Lac.

ii. In accordance with the Scheme of Arrangement, an amount of Rs. 6,055.32 Lac on account of Goodwill on merger has been charged to Securities Premium Account instead of amortising the same in the Statement of Profit & Loss over a period of ten years. Had the scheme not prescribed this treatment, the profit for the year would have been lower by Rs. 605.53 Lac, the opening balance in the Surplus in statement of Profit and Loss would have been lower by Rs. 1,211.06 Lac, the Goodwill would have been higher by Rs. 4,238.72 Lac (net written down value) and the Securities Premium Account would have been higher by Rs. 6,055.32 Lac.

d. We draw attention to Note 41 of the Notes to the Financial Statements wherein the Honorable High Court of the Judicature at Bombay has approved a Scheme of Arrangement whereby the assets and liabilities of the transferor company (Godrej Gold Coin Aquafeed Limited) have been taken over and recorded at their book values as on April 1, 2010. In accordance with the Scheme of Arrangement, an amount of Rs. 1,669.14 Lac on account of book values of Intangible Assets and an amount of Rs. 2,505.71 Lac on account of Goodwill on merger, aggregating to Rs. 4,174.85 Lac has been charged to Securities Premium Account instead of amortising the same in the Statement of Profit & Loss in case of Intangibles over a period of balance useful life of seven years and in case of Goodwill over a period of ten years. Had this amount been charged to the Statement of Profit and Loss, the profit for the year would have been lower by Rs. 502.52 Lac, the opening balance in the Surplus in Statement of Profit and Loss would have been lowr by Rs. 1,507.55 Lac, the Intangibles would have been higher by Rs. 661.36 Lac (net written down value), the Goodwill would have been higher by Rs. 1,503.43 Lac (net written down value) and the Securities Premium Account would have been higher by Rs. 4,174.85 Lac.

e. We draw attention to Note 48 of the Notes to the Financial Statements wherein the Honorable High Court of the Judicature at Bombay has approved a Scheme for the reduction of Capital (Securities Premium Account). As per the scheme an amount of Rs. 11,004.00 Lac has been transferred from the Securities Premium Account and used to create the Reserve for Employee Compensation Expenses of which Rs. 1,134.73 Lac for Employee Compensation Expenses incurred during the current year and Rs. 7,204.06 Lac for previous years has been adjusted. Had the scheme not prescribed this treatment the Profit for the year would have been lower by Rs. 1,134.73 Lac, the opening balance in the Surplus in Statement of Profit and Loss would have been lower by Rs. 7,204.06 Lac, the Reserve for Employee Compensation Expenses would have been lower by Rs. 2,665.21 Lac and the Securities Premium Account would have been higher by Rs. 11,004.00 Lac.

f. We draw attention to Note 42 of the Notes to the Financial Statements regarding investments in a subsidiary aggregating to Rs. 505.40 Lac which exceed the book value of the shares of the Company. The Company has also advanced Rs. 460.54 Lac to this Subsidiary. In view of the Company’s long–term financial involvement in, and the future profitability projected, the diminution in the value of this investment is considered to be of a temporary nature and no provision has been considered in the Financial Statements of the Company.

Our opinion is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2003 (“the Order”) issued by the Central Government of India in terms of sub–section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations 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, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956, read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;

e. on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub–section (1) of section 274 of the Companies Act, 1956.

f. 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.

For KALYANIWALLA & MISTRY
CHARTERED ACCOUNTANTS
Firm Registration No.: 104607W

ERMIN K. IRANI
PARTNER
Membership No. 35646

Place: Mumbai
Dated: May 14, 2014

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT

Referred to in paragraph (1) under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date.
 1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The Company has a program for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies reported on such verification are not material and have been properly dealt with in the books of account.

(c) In our opinion, the disposal of fixed assets during the year does not affect the going concern assumption.

2) (a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) In our opinion, the procedures of physical verification of inventory followed by the management are 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 inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.

3) (a) The Company has granted unsecured loans to two companies covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 1,295.00 Lac and the year–end balance of loan granted to such parties was Rs. 1,165.00 Lac.

(b) In our opinion the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interests of the Company.

(c) The parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest to the Company.

(d) There are no overdue amounts of loans taken from, or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(e) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

(f) Consequently, the question of commenting on the rates of interest and other terms and conditions of the loans taken being prejudicial to the interests of the Company and payment of regular principal and interest does not arise.

4) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchases of inventory, fixed assets and for the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls systems of the Company.

5) (a) According to the information and explanations provided to us, we are of the opinion that the particulars of contracts and arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have so been entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to prevailing market prices at the relevant time, where comparable market price exist.

6) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public and hence the provisions of section 58A, 58AA or any other provision of the Companies Act, 1956, read with the rules framed thereunder are not applicable.

7) In our opinion the Company has an internal audit system commensurate with the size of the Company and the nature of its business.

8) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima–facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

9) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, cess and any other material statutory dues applicable to it. According to the information and explanations given to us, no undisputed dues payable in respect of the above were in arrears, as at 31st March 2014 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty or cess which have not been deposited on account of any dispute, other than the following:

10) The Company does not have accumulated losses at the end of the financial year. Further, the Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

11) In our opinion and according to the information and explanations given to us, and based on the documents and records produced before us, the Company has not defaulted in repayment of dues to banks. The Company has not had any dues to financial institutions or debenture holders.

12) In our opinion and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) In our opinion the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore the provisions of any special statute applicable to chit fund or nidhi/mutual benefit fund societies are not applicable to the Company.

14) In our opinion the Company is not dealing in or trading in shares, securities, debentures and any other investments.

15) In our opinion, the terms and conditions on which the Company has given guarantees for loans taken by its joint venture company from banks are not prima facie prejudicial to the interest of the Company.

16) In our opinion, the term loans have been applied for the purpose for which they were raised.

17) According to the information and explanations given to us and on an overall examination of the Balance Sheet and the Cash Flow Statement of the Company, we report that no funds raised on short–term basis have been used for long term investment.

18) The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

19) The Company did not have outstanding debentures during the year.

20) The Company has not raised any money through a public issue during the year.

21) During the course of our examination of the book of account and records of the Company, and according to the information and explanations given and representations made by the Management, no major fraud on or by the Company, has been noticed or reported during the year.

For KALYANIWALLA & MISTRY
CHARTERED ACCOUNTANTS
Firm Registration No.: 104607W

ERMIN K. IRANI
PARTNER
Membership No. 35646

Place: Mumbai
Dated: May 14, 2014

Disclosure in auditors report relating to fixed assets

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a program for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies reported on such verification are not material and have been properly dealt with in the books of account.
(c) In our opinion, the disposal of fixed assets during the year does not affect the going concern assumption.

Disclosure relating to quantitative details of fixed assets

The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

Disclosure relating to physical verification and material discrepancies of fixed assets

The Company has a program for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies reported on such verification are not material and have been properly dealt with in the books of account.

Disclosure relating to fixed assets disposed off

In our opinion, the disposal of fixed assets during the year does not affect the going concern assumption.

Disclosure in auditors report relating to inventories

(a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are 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 inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.

Disclosure of physical verification of inventories at fixed intervals

The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

Disclosure in auditors report relating to any material fraud reported during period

During the course of our examination of the book of account and records of the Company, and according to the information and explanations given and representations made by the Management, no major fraud on or by the Company, has been noticed or reported during the year.

Disclosure in auditors report relating to guarantee given

In our opinion, the terms and conditions on which the Company has given guarantees for loans taken by its joint venture company from banks are not prima facie prejudicial to the interest of the Company.

Disclosure in auditors report relating to term loans used for purpose other than for purpose they were raised

In our opinion, the term loans have been applied for the purpose for which they were raised.

Disclosure in auditors report relating to nature and amount of fund raised for short–term has been used for long–term or vice versa

According to the information and explanations given to us and on an overall examination of the Balance Sheet and the Cash Flow Statement of the Company, we report that no funds raised on short–term basis have been used for long term investment.

Disclosure in auditors report relating to preferential allotment of shares

The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

Disclosure in auditors report relating to securities created against debentures issued

The Company did not have outstanding debentures during the year.

Disclosure in auditors report relating to purpose and end use of money raised through public issues

The Company has not raised any money through a public issue during the year.

Disclosure in auditors report relating to maintenance of cost records

We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima–facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

Disclosure relating to regularity in payment of undisputed statutory dues

The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, cess and any other material statutory dues applicable to it. According to the information and explanations given to us, no undisputed dues payable in respect of the above were in arrears, as at 31st March 2014 for a period of more than six months from the date they became payable.

Disclosure in auditors report relating to accumulated losses

The Company does not have accumulated losses at the end of the financial year. Further, the Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

Disclosure in auditors report relating to default in repayment of financial dues

In our opinion and according to the information and explanations given to us, and based on the documents and records produced before us, the Company has not defaulted in repayment of dues to banks. The Company has not had any dues to financial institutions or debenture holders.

Disclosure in auditors report relating to loans and advances granted by way of pledge of shares debentures and other securities

In our opinion and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

Disclosure in auditors report relating to adequacy of records maintained by share trading companies

In our opinion the Company is not dealing in or trading in shares, securities, debentures and any other investments.

Disclosure regarding terms of recovery of loans granted or taken

There are no overdue amounts of loans taken from, or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

Disclosure in auditors report relating to internal control system

In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchases of inventory, fixed assets and for the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls systems of the Company.

Disclosure in auditors report relating to contracts and arrangements under section 301 of companies act

(a) According to the information and explanations provided to us, we are of the opinion that the particulars of contracts and arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have so been entered.
(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to prevailing market prices at the relevant time, where comparable market price exist.

Disclosure relating to presence of register for necessary transactions

According to the information and explanations provided to us, we are of the opinion that the particulars of contracts and arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have so been entered.

Disclosure relating to reasonability of transactions

In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to prevailing market prices at the relevant time, where comparable market price exist.

Disclosure in auditors report relating to companies internal audit system

In our opinion the Company has an internal audit system commensurate with the size of the Company and the nature of its business.

Disclosure of procedure followed for physical verification of inventories

In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

Disclosure about maintenance of inventory records and material discrepancies

The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.

Disclosure in auditors report relating to loans

(a) The Company has granted unsecured loans to two companies covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 1,295.00 Lac and the year–end balance of loan granted to such parties was Rs. 1,165.00 Lac.
(b) In our opinion the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interests of the Company.
(c) The parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest to the Company.
(d) There are no overdue amounts of loans taken from, or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 during the year.
(f) Consequently, the question of commenting on the rates of interest and other terms and conditions of the loans taken being prejudicial to the interests of the Company and payment of regular principal and interest does not arise.

Disclosure about loans granted or taken by parties covered under section 301 of companies act

(a) The Company has granted unsecured loans to two companies covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 1,295.00 Lac and the year–end balance of loan granted to such parties was Rs. 1,165.00 Lac.
(b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

Disclosure regarding terms and conditions of loans granted or taken

(a) In our opinion the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interests of the Company.
(b) Consequently, the question of commenting on the rates of interest and other terms and conditions of the loans taken being prejudicial to the interests of the Company and payment of regular principal and interest does not arise.

Disclosure regarding terms of payment of loans granted or taken

The parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest to the Company.

Disclosure in auditors report relating to deposits accepted from public

In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public and hence the provisions of section 58A, 58AA or any other provision of the Companies Act, 1956, read with the rules framed thereunder are not applicable.

Disclosure in auditors report relating to provisions under special statute

In our opinion the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore the provisions of any special statute applicable to chit fund or nidhi/mutual benefit fund societies are not applicable to the Company.

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