Page 108 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

INDEPENDENT AUDITOR’S REPORT

To
The Members of
Fermenta Biotech Limited
(formerly known as DIL Limited)

Report on the Audit of the Standalone Financial Further, the directors of that entity in their report have stated that
Statements no provision for interest has been made as per mutually agreed
terms. The Management of the Company has represented to us
Qualified Opinion that they have not entered into any such terms that would result
in non-receipt of interest. For the reasons stated in Note 62 to the
We have audited the accompanying standalone financial
statements of Fermenta Biotech Limited (formerly known as DIL standalone financial statements, the Management of the Company
Limited) (“the Company”), which comprise the Balance Sheet as believes that no impairment on these Inter-corporate deposits
at 31 March 2020, and the Statement of Profit and Loss (including including interest accrued on such deposits and trade advances
Other Comprehensive Income), the Cash Flow Statement and the is deemed necessary. Having regard to the foregoing and in the
Statement of Changes in Equity for the year then ended, and a absence of sufficient appropriate audit evidence, we are unable to
summary of significant accounting policies and other explanatory comment whether the aforesaid Inter-corporate deposits including
information. interest accrued on such deposits and trade advances would be
recoverable including the consequential impact, if any, of such
In our opinion and to the best of our information and according to impairment that may be required to be made in the standalone
the explanations given to us, except for the possible effects of the financial statements.
matter described in the Basis for Qualified Opinion section below,
the aforesaid standalone financial statements give the information We conducted our audit of the standalone financial statements in
required by the Companies Act, 2013 (“the Act”) in the manner so accordance with the Standards on Auditing specified under section
required and give a true and fair view in conformity with the Indian 143(10) of the Act (SAs). Our responsibilities under those Standards
Accounting Standards prescribed under section 133 of the Act read are further described in the Auditor’s Responsibility for the Audit
with the Companies (Indian Accounting Standards) Rules, 2015, of the Standalone Financial Statements section of our report. We
as amended, (“Ind AS”) and other accounting principles generally are independent of the Company in accordance with the Code
accepted in India, of the state of affairs of the Company as at 31 of Ethics issued by the Institute of Chartered Accountants of India
March 2020, and its profit, total comprehensive income, its cash (ICAI) together with the ethical requirements that are relevant to our
flows and the changes in equity for the year ended on that date. audit of the standalone financial statements under the provisions of
the Act and the Rules made thereunder, and we have fulfilled our
Basis for Qualified Opinion other ethical responsibilities in accordance with these requirements
The Company has given (unsecured) Inter-corporate deposits and the ICAI’s Code of Ethics. We believe that the audit evidence
aggregating H2,130.00 Lakhs in various tranches to another entity obtained by us is sufficient and appropriate to provide a basis for
over the last twenty months until the end of the reporting period. our qualified opinion on the standalone financial statements
During the year, the Company has also given trade advances of Key Audit Matters
H102.00 Lakhs to the same entity. The amount outstanding as on
March 31, 2020 is H2,430.88 Lakhs, including interest of H198.88 Key audit matters are those matters that, in our professional
Lakhs. The deposits are repayable within one year from the date of judgment, were of most significance in our audit of the standalone
entering into the ICD agreement and are further renewable such financial statements of the current period. These matters were
that the total period of deposits does not exceed three years. No addressed in the context of our audit of the standalone financial
Interest has been recovered on these deposits since inception. As statements as a whole, and in forming our opinion thereon, and we
per that entity’s latest available audited financial statements for the do not provide a separate opinion on these matters. In addition to
year ended March 31, 2019, the entity is dominantly dependent on the matter described in the Basis for Qualified Opinion section of
borrowings, including from banks, and the net worth is marginal. our report, we have determined the matters described below to be
the key audit matters to be communicated in our report.

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