Page 172 - 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 Consolidated Financial ended March 31, 2019, the entity is dominantly dependent on
Statements borrowings, including from banks, and the net worth is marginal.
Further, the directors of that entity in their report have stated that no
Qualified Opinion provision for interest has been made as per mutually agreed terms.
The Management of the Parent has represented to us that they have
We have audited the accompanying consolidated financial not entered into any such terms that would result in non-receipt
statements of Fermenta Biotech Limited (formerly known as DIL of interest. For the reasons stated in Note 67 to the consolidated
Limited) (”the Parent”) and its subsidiaries, (the Parent and its financial statements, the Management of the Parent believes that
subsidiaries together referred to as “the Group”) which includes no impairment on these Inter-corporate deposits including interest
the Group’s share of profit/loss in its associate, which comprise accrued on such deposits and trade advances is deemed necessary.
the Consolidated Balance Sheet as at 31 March, 2020, and the Having regard to the foregoing and in the absence of sufficient
Consolidated Statement of Profit and Loss (including Other appropriate audit evidence, we are unable to comment whether
Comprehensive Income), the Consolidated Cash Flow Statement the aforesaid Inter-corporate deposits including interest accrued on
and the Consolidated Statement of Changes in Equity for the year such deposits and trade advances would be recoverable including
then ended, and a summary of significant accounting policies and the consequential impact, if any, of such impairment that may be
other explanatory information. required to be made in the consolidated financial statements.
In our opinion and to the best of our information and according We conducted our audit of the consolidated financial statements in
to the explanations given to us and based on the consideration accordance with the Standards on Auditing specified under section
of reports of the other auditors on separate financial statements 143 (10) of the Act (SAs). Our responsibilities under those Standards
of the subsidiaries referred to in the Other Matters section below, are further described in the Auditor’s Responsibility for the Audit of
except for the possible effects of the matter described in the Basis the Consolidated Financial Statements section of our report. We are
for Qualified Opinion section below, the aforesaid consolidated independent of the Group and its associate in accordance with the
financial statements give the information required by the Companies Code of Ethics issued by the Institute of Chartered Accountants of
Act, 2013 (“the Act”) in the manner so required and give a true India (ICAI) together with the ethical requirements that are relevant
and fair view in conformity with the Indian Accounting Standards to our audit of the consolidated financial statements under the
prescribed under section 133 of the Act read with the Companies provisions of the Act and the Rules made thereunder, and we have
(Indian Accounting Standards) Rules, 2015, as amended (‘Ind AS’), fulfilled our other ethical responsibilities in accordance with these
and other accounting principles generally accepted in India, of the requirements and the ICAI’s Code of Ethics. We believe that the
consolidated state of affairs of the Group as at 31 March, 2020, and audit evidence obtained by us and the audit evidence obtained
their consolidated profit, their consolidated total comprehensive by the other auditors in terms of their reports referred to in the
income, their consolidated cash flows and their consolidated sub-paragraph (a) of the Other Matters section below, is sufficient
changes in equity for the year ended on that date. and appropriate to provide a basis for our qualified opinion on the
Basis for Qualified Opinion consolidated financial statements.
The Parent has given (unsecured) Inter-corporate deposits Key Audit Matters
aggregating H2,130.00 Lakhs in various tranches to another entity Key audit matters are those matters that, in our professional
over the last twenty months until the end of the reporting period. judgment, were of most significance in our audit of the consolidated
During the year, the Parent has also given trade advances of H102.00 financial statements of the current period. These matters were
Lakhs to the same entity. The amount outstanding as on March 31, addressed in the context of our audit of the consolidated financial
2020 is H2,430.88 Lakhs, including interest of H198.88 Lakhs. The statements as a whole, and in forming our opinion thereon, and we
deposits are repayable within one year from the date of entering do not provide a separate opinion on these matters. In addition to
into the ICD agreement and are further renewable such that the the matter described in the Basis for Qualified section of our report,
total period of deposits does not exceed three years. No Interest we have determined the matters described below to be the key
has been recovered on these deposits since inception. As per that audit matters to be communicated in our report.
entity’s latest available audited financial statements for the year

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