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Auditor Report of Bannari Amman Sugars Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Bannari Amman Sugars Limited ("the Company") which comprise the Balance Sheet as at March 31 2015 the Statement of Profit and Loss the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to 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 principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities selection and application of appropriate accounting policies making judgments and estimates that are reasonable and prudent and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records 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

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit

We have taken into account the provisions of the Act the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act 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 misstatements

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 financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's directors 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 on the financial statements

Opinion

In our opinion and to the best of our information and according to the explanations given to us the aforesaid 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 of the state of affairs of the Company as at March 31 2015 and its profit and its cash flows for the year ended on that date

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) order 2015 ('the order') issued by the central Government of India in terms of sub-section 11 of section 143 of the Companies Act 2013 we give in the Annexure a statement on the matters specified in the paragraphs 3 and 4 of the order to the extent applicable

As required by Section 143(3) of the Act we report that :

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit

b) In our opinion proper books of account as required by law have been kept by the company so far as it appears from our examination of those books

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account

d) In our opinion the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014

e) On the basis of the written representations received from the directors as on March 31 2015 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2015 from being appointed as a director in terms of Section 164 (2) of the Act

f) With respect to the other matters to be included in the Auditor's Report in accordance with the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note 28 to the financial statements

ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses

iii) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company

Annexure to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of the company on the financial statements for the year ended 31 March 2015 we report that:

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets

b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner In accordance with this programme certain fixed assets were verified during the year and no material discrepancies were noticed on such verification In our opinion this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets

ii) a) Inventories have been physically verified during the year by the management at reasonable intervals

b) In our opinion and according to the information and explanations given to us the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business

c) In our opinion and on the basis of our examination of the records the company is generally maintaining proper records of its inventories No material discrepancy was noticed on physical verification of stocks by the management as compared to book records

iii) According to the information and explanations given to us and on the basis of our examination of the books of account the Company has not granted any loans secured or unsecured to the companies firms or other parties listed in the register maintained under Section 189 of the Companies Act 2013 ('the Act') Consequently the provisions of Clauses iii (a) iii (b) and of the Order are not applicable to the company

iv) 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 with regard to purchase of inventory fixed assets and sale of goods and services During the course of our audit we have not observed any major weakness in the internal control system

v) The Company has not accepted any deposits from the public

vi) As per information & explanation given by the management maintenance of cost records has been prescribed by the Central Government and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained under Section 148(1) of the Companies Act 2013 by the company

vii) a) According to the information and explanations given to us and on the basis of our examination of the records of the company the undisputed statutory dues including provident fund Employee's State Insurance income tax sales tax wealth tax service tax duty of customs duty of excise value added taxes cess and any other material statutory dues have been regularly deposited during the year by the company with the appropriate authorities According to the information and explanations given to us no undisputed amounts payable in respect of the above dues were in arrears as at 31 March 2015 for a period of more than six months from the date they became payable

b) According to the information and explanations given to us the disputed statutory dues (in case of income tax sales tax wealth tax service tax duty of customs duty of excise value added taxes and cess) aggregating to Rs1579.62 Lakhs that have not been deposited on account of matters pending before appropriate authority are as under :

Name of the Nature of Amount Period to which the Statute Dues (Rs in Lakhs) Amount Relates to

Income Tax Income Tax 1579.62 Assessment Year Act 1961 2012 - 13

Name of the Forum where dispute Statute is pending

Income Tax Commissioner of Income Tax Act 1961 (Appeals) Coimbatore

c) According to the information and explanations given to us the amounts which were required to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rules thereunder has been transferred to such fund within time

viii) The Company does not have any accumulated losses at the end of the financial year The Company has not incurred cash losses in the financial year and in the immediately preceding financial year

ix) The Company did not have any outstanding dues to financial institutions banks or debenture holders during the year

x) In our opinion and according to the information and the explanations given to us the company has not given any guarantee for loans taken by others from banks or financial institutions.

xi) According to the information and explanations given to us the term loans are applied for the purpose for which the loans were obtained

xii) According to the information and explanations given to us no fraud on or by the company has been noticed or reported during the course of our audit

For P N RAGHAVENDRA RAO & CO Chartered Accountants P R VITTEL Partner Coimbatore M No 200/18111 29.5.2015 ICAI Firm Regn. No: 003328S


Mar 31, 2014

We have audited the accompanying financial statements of M/s Bannari Amman Sugars Limited ("the Company") which comprise the Balance Sheet as at 31st March 2014 the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information

Management''s Responsibility for the Financial Statements

The Company''s 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 General circular 15/2013 dated 13th September 2013 of the Ministry of the 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

Auditors'' 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 the 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 depending on the auditors'' 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 Company''s internal control An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the 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 aforesaid 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 31st March 2014

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

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

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 purposes of our audit

b In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books

c The Balance Sheet Statement of Profit and Loss, and the 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 the Cash Flow Statement comply with the Accounting Standards notified under the Companies Act 1956 ("the Act") read with General Circular 15/2013 dated 13th September 2013 of the Ministry of the Corporate Affairs in respect of Section 133 of the Companies Act 2013

e On the basis of the written representations received from the directors as on 31st March 2014 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2014 from being appointed as a director in terms of Clause (g) of sub-section (1) of Section 274 of the Act

Annexure to Independent Auditors'' Report The Annexure referred to in our report to the members of M/s Bannari Amman Sugars Limited ("the Company") on the accounts of the company for the year ended 31st March 2014

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit we report that:

i a The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets

b As explained to us fixed assets have been physically verified by the management at reasonable intervals no material discrepancies were noticed on such verification

c Fixed assets disposed off during the year were not substantial and therefore do not affect the going concern assumption

ii a As explained to us inventories have been physically verified during the year by the management at reasonable intervals

b In our opinion and according to the information and explanations given to us the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business

c. In our opinion and on the basis of our examination of the records the Company is generally maintaining proper records of its inventories No material discrepancy was noticed on physical verification of stocks by the management as compared to book records

iii a. According to the information and explanations given to us and on the basis of our examination of the books of account the Company has not granted any loans secured or unsecured to companies firms or other parties listed in the register maintained under Section 301 of the Companies Act 1956 Consequently the provisions of Clauses iii (b) iii (c) and iii (d) of the Order are not applicable to the Company

e. According to the information and explanations given to us and on the basis of our examination of the books of account the Company has not taken loans from companies firms or other parties listed in the register maintained under Section 301 of the Companies Act 1956 Thus Sub Clauses (f) & (g) are not applicable to the company

iv In our opinion and according to the information and explanations given to us there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business for the purchase of inventories & fixed assets and payment for expenses & for sale of goods and services During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control system of the company

v a In our opinion and according to the information and explanations given to us the particulars of all contracts or arrangements that need to be entered into the register maintained under Section 301 of the Companies Act 1956 have been so entered

b In our opinion and according to the information and explanations furnished to us the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act 1956 and exceeding the value of rupees five lakhs in respect of any party during the year 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 the public Therefore the provisions of Clause 4(vi) of the Companies (Auditor''s Report) Order 2003 are not applicable

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

viii As per information & explanation given by the management maintenance of cost records has been prescribed by the Central Government under Clause (d) of Sub-Section (1) of Section 209 of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained

ix a According to the records the company is 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 other material statutory dues applicable to it. According to the information and explanations given to us no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March 2014 for a period of more than six months from the date they became payable

b The disputed statutory dues aggregating to Rs 345.73 Lakhs that have not been deposited on account of matters pending before appropriate authority are as under:

Name of the Nature of Amount Period to which the Forum where dispute Statute Dues (Rs in Lakhs) Amount Relates is pending

Income Tax Income Tax 18.70 Assessment Year Act 1961 2011-12 Commissioner of Income Tax(Appeals)

Income Tax Income Tax 327.03 Assessment Year Coimbatore Act 1961 2007 - 08

x The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year

xi In our opinion and according to the information and explanation given to us the Company has not defaulted in repayment of dues to financial institutions or banks

xii 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

xiii In our opinion the Company is not a chit fund/nidhi/mutual benefit fund/society Therefore the provisions of Clause (xiii) of paragraph 4 of the Order are not applicable to the Company

xiv According to information and explanations given to us the Company is not dealing or trading in shares securities debentures and other investments

xv According to the information and explanations given to us the Company has not given any guarantee for loans taken by others from banks or financial institutions

xvi In our opinion the term loans have been applied for the purpose for which they have been raised

xvii According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company we report that the no funds raised on short term basis have been used for long term investments

xviii According to the information and explanations given to us 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 during the year

xx The Company has not raised any money by way of public issue during the year

xxi According to the information and explanations given to us no fraud on or by the company has been noticed or reported during the course of our audit

For P N RAGHAVENDRA RAO & CO

Chartered Accountants

P R VITTEL

Partner Coimbatore M No 200/18111

30 5 2014 ICAI Firm Regn. No: 003328S


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of M/s. Bannari Amman Sugars limited ("the Company"), which comprise the Balance sheet as at 31st March 2013 the Statement of profit and loss and the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information

Management''s Responsibility for the Financial Statements

The Company''s 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 referred to in sub-section (3C) of section 211 of the Companies Act 1956 ("the Act") 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

Auditors'' 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 the 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 the 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 the 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 An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the 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 31st March, 2013:

b. In the case of the Statement of Profit and Loss of the profit of the Company for the year ended on that date and

c. In the case of the Cash Flow Statement of the cash flows of the Company for the year ended on that date 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 purposes of our audit

b. In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books

c. The Balance Sheet Statement of Profit and Loss and the 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 the cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 221 of the Act

e. On the basis of the written representations received from the directors as on 31st March 2013 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2013 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act

Annexure to Independent Auditors'' Report

The Annexure referred to in our report of the members of M/s. Bannari Amman Sugars Limited (the Company) on the accounts of the company for the year ended 31st March, 2013

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit we report that :

1 In respect of its fixed assets :

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

b. As explained to us fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification

c. Fixed assets disposed off during the year were not substantial and therefore do not affect the going concern assumption

2 a. As explained to us inventories have been physically verified during the year by the management at reasonable intervals

b. In our opinion and according to the information and explanations given to us the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business

c. In our opinion and on the basis of our examination of the records the Company is generally maintaining proper records of its inventories As explained to us there were no material discrepancy noticed on physical verification of inventories by the management as compared to book records

3 a. According to the information and explanations given to us and on the basis of our examination of the books of account the Company has not granted any loans secured or unsecured to companies firms or other parties listed in the register maintained under Section 301 of the Companies Act 1956

b. According to the information and explanations given to us and on the basis of our examination of the books of account the Company has not taken loans from companies firms or other parties listed in the register maintained under Section 301 of the Companies Act 1956

4 In our opinion and according to the information and explanations given to us there exists an and adequate internal control procedure commensurate with the size of the company and the nature of its business for the purchase of inventories & fixed assets and payment for expenses & for sale of goods and services During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control system of the company

5 a. In our opinion and according to the information and explanations given to us the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act 1956 have been so entered

b. in our opinion and according to the information furnished to us the transactions made in pursuance of contacts or arrangements entered in the register maintained under section 301 of the Companies Act 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time

6 The Company has not accepted any deposits from the public Therefore the provisions of clause 4(vi) of the Companies (Auditor''s Report) Order 2003 are not applicable

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

8 We have broadly reviewed the cost records maintained by the company pursuant of the Companies (Cost Accounting Records) Rules 2011 prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained We have not however made a detailed examination of the same

9 a. According to the records the Company is 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 other material statutory dues applicable to it According to the information and explanations given to us no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March, 2013 for a period of more than six months from the date they became payable

b. The disputed statutory dues aggregating to Rs.1684.27 lakhs that have not been deposited on account of matters pending before appropriate authority are as under :

Name of the Nature of Amount Statute Dues (Rs in Lakhs)

Income Tax Income Tax 1684.27 Act 1961

Name Period to which the Forum where dispute Amount Relates is pending

Income Tax ACT 1961 Assessment Year CIT (Appeals), 2010 - 11 Coimbatore

10 The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year

11 In our opinion and according to the information and explanations given to us the Company has not defaulted in repayment of dues to financial institutions or banks

12 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/nidhi/mutual benefit fund/society Therefore the provisions of clause (xiii) of paragraph 4 of the order are not applicable to the Company

14 According to information and explanations given to us, the Company is not dealing or trading in shares securities debentures and other investments Therefore clause 4(xiv) of the Companies (Auditor''s Report) order 2003 is not applicable to the company

15 According to the information and explanations given to us the Company has not given any guarantee for loans taken by others from banks or financial institutions

16 The company has raised new term loans during the year The term loans outstanding at the beginning of the year and those raised during the year have been applied for the purpose for which they have been raised

17 According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company we report that no funds raised on short term basis have been used for long term investments

18 According to the information and explanations given to us 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

19 The Company has not issued any debentures during the year

20 The Company has not raised any money by way of public issue during the year

21 According to the information and explanations given to us no fraud on or by the company has been noticed or reported during the course of our audit

For P N RAGHAVENDRA RAO & CO

Chartered Accountants

P R VITTEL

Partner

Coimbatore M No 200/18111

30.5.20T3 ICAI Firm Regn. No: 003328S


Mar 31, 2012

We have audited the attached Balance Sheet of M/s Bannari Amman Sugars Limited as at 31.3.2012 , Statement of Profit and Loss and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company s management. Our responsibility is to express an opinion on these financial statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion

I As required by the Companies (Auditor s 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 furnish below a statement on the matters specified in paragraphs 4 and 5 of the said Order

i) In respect of its fixed assets

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets

b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which in our opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such verification

c) During the year the Company has not disposed off substantial part of fixed assets

ii In respect of its inventories

a) The inventories have been physically verified by the management. In our opinion the frequency of verification is reasonable

b) The procedures of physical verification of inventories 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 inventories. As explained to us there were no material discrepancies noticed on physical verification of inventory 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 Companies Act 1956

b) The Company has not taken any inter-corporate deposit from a company covered in the register maintained under section 301 of the Companies Act, 1956

iv In our opinion and according to the information and explanations given to us there exists an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory fixed assets and with regard to the sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control system of the company

v a) In our opinion and according to the information and explanations given to us the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act 1956 have been so entered

b) In our opinion and according to the information and explanations furnished to us the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act 1956 and exceeding the value of Rupees Five Lakhs in respect of any party during the year 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 the public. Therefore the provisions of clause 4(vi) of the Companies (Auditors Report) Order 2003 are not applicable

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

viii We have broadly reviewed the cost records maintained by the company pursuant of the Companies (Cost Accounting Records) Rules 2011 prescribed by the central government under Section 209 (1) (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not however made a detailed examination of the same

ix In respect of statutory dues

a) The Company is 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 other material statutory dues applicable to it. According to the information and explanations given to us no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st M arch 2012 for a period of more than six months from the date they became payable

b) The disputed statutory dues aggregating to Rs 695.40 Lakhs that have not been deposited on account of matters pending before appropriate authority are as under .

Name of the Nature of Amount Period to ststute Due (Rsin lakhs) which the Forum where dispute

Income Tax Income Tax 695.40 April 2008 to The Commissioner of Act 1961 March 2009 Income Tax (Appeals)

Coimbatore

x The Company has no accumulated losses and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year

xi In our opinion and according to the information and explanation given to us the Company has not defaulted in repayment of dues to financial institutions or banks

xii In our opinion and according to the information and explanation give to us no loans and advances have been granted by the Company on the basis of security by way of pledge of shares debentures and other securities

xiii In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore clause 4 (xiii) of the Companies (Auditor s Report) Order 2003 is not applicable to the Company

xiv In our opinion the Company is not dealing in or trading in shares securities debentures and other investments. Therefore clause 4(xiv) of the Companies (Auditor s Report) Order 2003 is not applicable to the Company

xv According to information and explanations given to us the Company has not given any guarantee for loans taken by others from banks or financial institutions

xvi In our opinion the term loans have been applied for the purpose for which they have been raised

xvii According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company are report that the no funds raised on short term basis have been used for long term investment

xviii According to the information and explanations given to us 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 debentures during the year

xx The Company has not raised any money by way of public issue during the year

xxi According to the information and explanations given to us no fraud on or by the Company has been noticed or reported during the course of our audit

II Further to the above are report that

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes 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 dealt with by this report 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 31st March 2012 and taken on record by the Board of Directors we report that none of the directors is disqualified as on 31 st M arch 2012 from being appointed as directors in terms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956

f) In our opinion and to the best of our information and according to the explanations given to us the said accounts give the information required by the Companies Act 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India

(i) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2012

(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and

(iii) In case of the Cash Flow Statement of the cash flows for the year ended on that date

For P N RAGHAVENDRA RAO & CO

Chartered Accountants

P R VITTEL

Partner

Coimbatore M No 200/18111

25.5.2012 ICAI Firm Regn. No: 003328S


Mar 31, 2011

We have audited the attached Balance Sheet of M/s Bannari Amman Sugars Limited as at 31.3.2011, the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion

I As required by the Companies (Auditor's 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 furnish below a statement on the matters specified in paragraphs 4 and 5 of the said Order

1 In respect of its fixed assets

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets

b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which in our opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such verification

c) During the year the Company has not disposed off substantial part of fixed assets

2 In respect of its inventories

a) The inventories have been physically verified by the management. In our opinion the frequency of verification is reasonable

b) The procedures of physical verification of inventories 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 inventories. As explained to us there were no material discrepancies noticed on physical verification of inventory as compared to the book records

3 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 Companies Act 1956

b) The Company has taken inter-corporate deposit of Rs 50 Crores from a Company covered in the register maintained under section 301 of the Companies Act 1956. The deposit has been fully repaid. The maximum amount involved during the year is Rs 50 Crores and the year end balance of deposit taken from such party was Rs Nil

c) The rate of interest and other terms and conditions of the deposit are not prima-facie prejudicial to the interest of the company

d) The repayment and payment of interest are regular and there is no overdue amount

4 In our opinion and according to the information and explanations given to us there exists an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory fixed assets and with regard to the sale of goods. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control system of the company

5 a) In our opinion and according to the information and explanations given to us the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act 1956 have been so entered.

b) In our opinion and according to the information and explanations furnished to us the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act 1956 and exceeding the value of Rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time

6 The Company has not accepted any deposits from the public. Therefore the provisions of clause (vi) of the Companies (Auditor's Report) Order 2003 are not applicable

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

8 We have broadly reviewed the books of accounts relating to material, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of Cost Records under Section 209 (1) (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not however made a detailed examination of the same

9 In respect of statutory dues

a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Emplyees State Insurace, Income-tax, Sales-tax, Wealth tax, Service tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it

b) According to the information and explanations given to us no undisputed amounts payable in respect of Income-tax, Sales-tax, Wealth-tax, Service-tax, Customs Duty and Excise Duty were in arrears as at 31st March 2011 for a period of more than six months from the date they became payable

c) The disputed statutory dues aggregating to Rs 554.84 Lakhs that have not been deposited on account of matters pending before appropriate authority are as under

Name of the Nature of Amount Period to which the Forum where dispute Statute the Dues (Rs in Lakhs) Amount Relates is pending

Income Tax Income Tax 404.85 April 2007 to The Commissioner of Act 1961 March 2008 Income Tax (Appeals) Coimbatore

Central Excise Excise Duty 149.99 20.9.1991 to The Commissioner of Act 1944 31.1.1994 Central Excise Salem

10 The Company has no accumulated losses and has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year

11 In our opinion and according to the information and explanation given to us the Company has not defaulted in repayment of dues to financial institutions or banks

12 In our opinion and according to the information and explanation give to us no loans and advances have been granted by the Company 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 clause 4 (xiii) of the Companies (Auditor's Report) Order 2003 are not applicable to the Company

14 In our opinion the Company is not dealing in or trading in shares securities debentures and other investments. Therefore the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order 2003 are not applicable to the Company

15 According to information and explanations given to us the Company has not given any guarantee for loans taken by others from banks or financial institutions

16 In our opinion during the year under audit the Company has not obtained any term loans

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

18 According to the information and explanations given to us 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

19 The Company has not issued debentures during the year

20 The Company has not raised any money by way of public issue during the year

21 According to the information and explanations given to us no fraud on or by the Company has been noticed or reported during the course of our audit

II Further to the above 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 purposes 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 Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account

d) In our opinion the Balance Sheet Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Secting 211 of the Companies Act 1956

e) On the basis of written representations received from the directors as on 31st March 2011 and taken on record by the Board of Directors we report that none of the directors is disqualified as on 31st March 2011 from being appointed as directors in terms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956

f) In our opinion and to the best of our information and according to the explanations given to us the said accounts give the information required by the Companies Act 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India

(i) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2011

(ii) In the case of the Profit and Loss Account of the Profit for the year ended on that date and

(iii) In case of the Cash Flow Statement of the cash flows for the year ended on that date

For P N RAGHAVENDRA RAO & CO

Chartered Accountants

P R VITTEL Partner Coimbatore M No 200/18111 23.5.2011 ICAI Firm Regn. No: 003328S




Mar 31, 2010

We have audited the attached Balance SheetofM/s Bannari Amman Sugars Limited as at 31.3.2010, the Profitand Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the compan/s management. Our responsibility is to express an opinion on these financial statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion

I As required by the Companies (Auditors Report) Order 2003 issued by the Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we furnish below a statement on the matters specified in paragraphs 4 and 5 of the said Order

1 In respect of its fixed assets

a The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information

b As explained to us, the fixed assets have been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification

c The company has not disposed off substantial part of fixed assets during the year

2 In respect of its inventories

a As explained to us, inventories have been physically verified by the management at reasonable intervals during the year

b In our opinion and accordingto the information and explanations given to us, the procedures of physical verification of inventories 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 has maintained proper records of inventories. As explained to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records

3 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 Companies Act, 1956. The company has taken inter-corporate deposit of Rs.98 Crores from a company covered in the register maintained under section 301 of the Companies Act, 1956. The deposits have been fully repaid before the year end b In our opinion, the rate of interest and other terms and conditions of the deposits are not, prima facie, prejudical to the interest of the company

c The payment of principal amount and interest are regular and there is no overdue amount in respect of above said deposits

4 In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory, fixed assets and also forthe sale of goods. During the course of our audit, we have not observed any major weaknesses in internal controls

5 a In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements

referred to in Section 301 of the Companies Act,l 956 have been entered in the register required to be maintained under that Section: and

b In our opinion and according to the information and explanations furnished to us, 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

6 The company has not accepted any deposits from the public

7 In our opinion, the internal audit system of the company is commensurate with its size and nature of its business

8 The Central Government has prescribed maintenance of Cost Records under Section 209(1 }(d) of the Companies Act, 1956 in respect of certain manufacturing activities of the company. We have broadly reviewed the accounts and records of the company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same

9 In respect of statutory dues

a According to the records of the company, 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 other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at31st March, 201 0 for a period of more than six months from the date of becoming payable

b The disputed dues of Excise duty aggregating to Rs 1 49.99 Lakhs, have not been deposited on account of matters pending before appropriate authorities is as under



Central Excise , Excise Duty 149.99 20.9.1991 to High Court,

Act, 1944 31.1.1994 Chennai

10 The company has no accumulated losses and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year

11 Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions or banks

12 In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the company 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, clause 4(xiii) of the Companies (Auditors Report) Order 2003 is not applicable to the company

14 The company is not dealing or trading in shares, securities, debentures and other investments. Therefore, clause 4(xiv) of the Companies (Auditors Report) Order 2003 is not applicable to the company

15 According to information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions

16 To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the company were prima facie, applied by the Company during theyearforthe purpose for which the loans were obtained

17 According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we are of the opinion that the company has not utilised short-term funds for long-term investments

18 During the year, 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, 1 956

19 The company has not issued debentures during the year

20 The company has not raised any money by wayof public issue during the year

21 In our opinion and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year that causes the financial statements to be materially misstated

II Further to the above, 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 purposes 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, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the mandatory Accounting Standards referred in sub-section (3C) of Section 21 1 of the Companies Act, 1956;

e) In our opinion, and based on information and explanations given to us, none of the directors are disqualified as on 31st March, 2010 from being appointed as directors in terms of clause (g) of sub-Section (1) of section 274 of the Companies Actl956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies and other notes thereon give the information required by the Companies Act, 1 956, in the manner so required, and present a true and fair view, in conformity with the accounting principles generally accepted in India

(i) In so far as it relates to Balance Sheet, of the state of affairs of the company as at31st March,2010;

(ii) In so far as it relates to the Profit and Loss Account, of the Profit of the company for the year ended on that date: and

(iii) In so far as it relates to the Cash Flow Statement, of the cash flows of the company for the year ended on that date

For P N RAGHAVENDRA RAO & CO

Chartered Accountants

P R VITTEL Coimbatore Partner

27.5.2010 M No 200/18111

 
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