Page 114 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT

[Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date to the
members of Fermenta Biotech Limited (formerly known as DIL Limited)]

(i) (a) The Company has maintained proper records showing full (c) According to the information and explanations given
particulars, including quantitative details and situation of to us and the records examined by us and based on
fixed assets. the examination of the registered indenture of sale,
lease deeds and other documents provided to us by
(b) The Company has a programme of verification of fixed the Management of the Company and based on the
assets to cover all the items in a phased manner over a confirmation directly received by us from lender, in case of
period of three years which, in our opinion, is reasonable the title deed and the lease deed that have been pledged
having regard to the size of the Company and the nature as security for loans taken by the Company, we report that,
of its assets. Pursuant to the programme, certain fixed the title deeds and lease deeds comprising the immovable
assets were physically verified by the management during properties of land and buildings, disclosed under ‘Property,
the year. According to the information and explanations Plant and Equipment’, ‘Right-of-use-asset’ and ‘Investment
given to us, no material discrepancies were noticed on Property’ in the standalone financial statements, are held
such verification.
in the name of the Company as at the balance sheet date,
except as described below:

Particulars As at March 31, 2020 Remarks
Cost or deemed Carrying amount
cost (in Lakhs) (in Lakhs)
Freehold land located at Village Takwe 8.06 8.06 The land is held in Trust in the name of the Managing
(Budruk), Tal – Maval District – Pune Director and one of the directors of the Company, who is
admeasuring 21.39 Acres also a relative of the Managing Director, on behalf of the
Company and as confirmed by them.

(ii) As explained to us, the inventories, excluding inventories this loan. As explained to us, the Company’s management
with third parties, were physically verified during the year is not taking any steps for recovery of the principal and
by the Management at reasonable intervals (including the interest.
verifications conducted by the Management subsequent to According to the information and explanations given to
the year end on account of COVID-19 related lockdown) and us, apart from the above, the Company has not granted
no material discrepancies were noticed on physical verification. loans, secured or unsecured, to firms, Limited Liability
Inventories lying with third parties as at March 31, 2020 have Partnerships or other parties covered in the register
been confirmed by them to the Company.
maintained under section 189 of the Companies Act, 2013.
(iii) According to the information and explanations given to (iv) In our opinion and according to the information and
us, in respect of loans granted by the Company, secured or explanations given to us, the Company has complied with
unsecured, to companies, firms, Limited Liability Partnerships the provisions of section 186 of the Companies Act, 2013 in
or other parties covered in the register maintained under respect of grant of loans, making investments and providing
section 189 of the Companies Act, 2013:
guarantees and securities, as applicable. During the year, the
(a) The Company has not granted any loan during the year Company has not granted any loan covered under section 185
ended March 31, 2020 and hence reporting under clause of the Companies Act, 2013.
3(iii)(a) of the Order is not applicable.
(v) In our opinion and according to the information and
(b) The Company had, in the previous year, granted an explanations given to us, the Company has not accepted any
unsecured loan repayable on demand to a Company deposit to which the provisions of sections 73 to 76 or any
which is an associate. In the absence of repayment other relevant provisions of the Companies Act, 2013 and the
schedule of principal and interest being stipulated, we are Companies (Acceptance of Deposits) Rules, 2014, as amended,
unable to comment on the regularity of the repayments or are applicable and hence reporting under clause 3(v) of the
receipts of principal amounts and interest. Order is not applicable.

(c) As stated above, the schedule of repayment of principal (vi) The maintenance of cost records has been specified by the
and payment of interest is not stipulated. The Company Central Government under section 148(1) of the Companies Act,
during the previous year, made an allowance of H37 Lakhs 2013. We have broadly reviewed the cost records maintained
to fully impair the loan. Interest was not being accrued on by the Company pursuant to the Companies (Cost Records

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